The cabinet decided on Tuesday that the government would retain ownership of Rialto theatre in Limassol and lease it to the municipality with clear regulations as regards to the administration, operation and funding of the historical landmark.
Deputy Culture Minister Klea Papaellina said the leasing terms would be those in place for assets allocated to local authorities.
Papaellina added that the Limassol municipality was now responsible for appointing a new board of directors that would allow for collaborations with its cultural organisations.
Meanwhile, 12 permanent members of staff would keep their status and benefits, as long as they remained in the employment of the company.
The deputy minister said the state would be funding Rialto with €250,000 for 2026, €125,000 for 2027 and €75,000 for 2028, in line with the municipality’s request.
Beyond 2028, no state funding will be made available.
Earlier this month, calls had been intensifying for Rialto to be handed over to the municipality.
Rialto was originally built as a modern cinema in 1930. Following its decline in the 1980s, the theatre was bought in 1991 by the Limassol cooperative bank, which carried out restoration works and reopened it in 1999.
In 2018, when the cooperative was dissolved, Rialto ended up in the hands of the state.