Cypriot asset management company KEDIPES transferred €60 million to the state on December 18 as part of the repayment of state aid previously granted to the former Cooperative Bank. This payment relates to the fourth quarter of 2025 and forms part of a long-term repayment process that began after the banking crisis.
Cyprus’s financial authorities emphasize that the regular payments made by KEDIPES confirm the sustainability of the chosen model for managing non-performing assets and help reduce the burden on the state budget.
Repayment Results Since 2018
Since KEDIPES began operations in 2018, the total amount of state aid repaid has reached €1.74 billion. The majority of this sum has been returned through direct cash transfers, significantly strengthening the country’s fiscal position. Additional funds have been allocated to social programs and to meeting obligations under other state borrower support schemes.
According to the Cyprus Ministry of Finance, this level of repayment has been one of the key factors in stabilizing the banking sector and boosting international investor confidence in the Cypriot economy in recent years.
“Rent-to-Own” Scheme and Social Impact
Alongside repaying state aid, KEDIPES is actively involved in implementing the “Rent-to-Own” scheme, acting as its main operator. To date, the company has allocated around €50 million in direct expenditure, enabling 411 residential properties to be included in the program. The initiative is aimed at supporting vulnerable households that are unable to service mortgage loans but wish to retain the right to remain in their homes.
The program remains relevant in 2025 amid high interest rates and rising living costs, and the Cypriot authorities view it as an important tool for maintaining social stability.
Financial Stability and Future Plans
KEDIPES maintains a cash reserve of approximately €80 million, earmarked exclusively for the continued financing of the “Rent-to-Own” scheme. The existence of this reserve allows the company to meet its social commitments without jeopardizing the core process of repaying state aid.
Experts note that if the current pace of repayments is maintained, Cyprus will be able to further mitigate the consequences of past banking crises while continuing to support socially sensitive 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.