Cyprus asset management company KEDIPES has transferred €30 million to the state as part of the repayment of government support previously granted to the former Cooperative Bank. This payment relates to the first quarter of 2026 and is part of a long-term process of returning funds that began after the banking crisis.
Cypriot financial authorities emphasize that regular payments from KEDIPES confirm the sustainability of the chosen model for managing non-performing assets and reduce the burden on the state budget.
Repayment results since 2018
Since KEDIPES began operations in 2018, the total amount of state aid returned has reached €1.8 billion. The majority of this sum has been paid in the form of direct cash transfers, significantly strengthening the country’s fiscal position. Additional funds have been allocated to social programs and to fulfilling obligations under other government support schemes for borrowers.
According to estimates by the Ministry of Finance of Cyprus, this level of repayment has been one of the key factors in stabilizing the banking sector and increasing the confidence of international investors in the Cypriot economy in recent years.
“Mortgage to Rent” program and social impact
Alongside repaying state aid, KEDIPES is actively involved in the implementation of the “Mortgage to Rent” program, acting as its main operator. To date, the company has allocated around €78 million in direct expenses, enabling the inclusion of 638 residential properties in the program. This initiative is aimed at supporting vulnerable households that cannot service mortgage loans but wish to retain the right to live in their homes.
The program remains relevant in 2026 amid high interest rates and rising living costs, and Cypriot authorities consider it an important tool for social stability.
Financial stability and future plans
KEDIPES maintains a cash reserve of approximately €60 million, intended exclusively for further financing of the “Mortgage to Rent” program. The availability of this reserve allows the company to fulfill its social obligations without risking the core process of repaying state aid.
Experts note that if the current pace of repayments continues, Cyprus will be able to further mitigate the consequences of the banking crisis of previous years while supporting socially vulnerable groups. In the coming periods, KEDIPES is expected to continue combining financial discipline with the implementation of programs aimed at sustainable development and social protection.