Cyprus asset management company KEDIPES demonstrated a notable improvement in financial results in the second half of 2025. As stated by Chairman of the Board Lambros Papadopoulos, the indicators were significantly better than in the first half of the year. The total volume of restructuring decisions and debt recoveries increased by 22% to reach 391 million euros, while cash inflows rose by nearly one third, amounting to 209 million euros.
The positive trend was supported by active repayment campaigns for both performing and non-performing loans. These initiatives have been recognized as effective and will continue in 2026. At the same time, KEDIPES acknowledges that delays remain in the sale of loan portfolios and in advancing unresolved recovery cases.
Results of fund recovery since 2018
Since the start of KEDIPES operations in 2018, the total amount of state aid returned has reached 1.746 billion euros. The main portion of this amount was paid in the form of direct cash transfers, significantly strengthening the country’s fiscal position. Additional funds were directed toward implementing social programs and fulfilling obligations under other government borrower support schemes.
According to the Cyprus Ministry of Finance, this volume of repayment has become one of the key factors in stabilizing the banking sector and increasing the confidence of international investors in the Cypriot economy in recent years. At year-end, KEDIPES assets were valued at 5.5 billion euros and included cash, liquid assets, real estate, and performing loans, confirming gradual balance sheet stabilization.
Key agreements with Eurobank Limited in 2026
One of the most significant events of 2026 was the signing of an agreement between KEDIPES and Eurobank Limited (formerly Hellenic Bank), concerning the termination of the Loan Guarantee Scheme and the repurchase of a non-performing loan portfolio, as well as the final closure of obligations and guarantees in force since 2018 following the transfer of assets from the former Cyprus Cooperative Bank.
As a result, guarantees provided by KEDIPES and the Republic of Cyprus have been fully terminated, and the net value of the Loan Guarantee Scheme has been reduced to 74 million euros. This amount is approximately half of the initial estimates made in 2018, significantly reducing risks for the state.
Repurchase of non-performing loans and portfolio management
A non-performing loan portfolio with a nominal value of 287 million euros was repurchased for 110 million euros. The reduction in price compared to the initial valuation is explained by strong cash inflows from this portfolio after September 2024. Asset management continues to be carried out by Themis Portfolio Management Limited under a new agreement that will remain in effect until the end of 2030.
According to the current financial plan, future inflows are expected to fully compensate for the acquisition cost of the portfolio, making the transaction economically justified and sustainable in the long term.
Cash flows and expenses in the second half of the year
In the second half of 2025, regular cash inflows exceeded those of the same period in 2024, despite an overall decrease for the full year. This is linked to the absence of income from loan portfolio sales, which had provided a significant one-off effect in 2024.
At the same time, KEDIPES managed to reduce operating and administrative expenses, positively affecting net cash flows. For the entire year 2025, the net cash result after all payments exceeded 200 million euros, while the cumulative figure since 2018 approached 1.8 billion euros.
State aid and the “Mortgage to Rent” program
In December 2025, KEDIPES made another payment toward the repayment of state aid amounting to 60 million euros. Taking into account all payments and expenses under the social program “Mortgage to Rent,” the total amount returned reached 1.746 billion euros.
The “Mortgage to Rent” program, which remains an important social instrument in Cyprus, continues to be implemented. Out of more than two thousand submitted applications, 921 have been approved, and around 500 residential properties have been acquired for the program’s needs. A total of 57 million euros has been allocated for its financing, while KEDIPES maintains a liquidity reserve of 80 million euros to further support the initiative.
Outlook for 2026
The results of the second half of 2025 confirm that KEDIPES is moving toward a sustainable financial model, reducing pressure on the state budget and strengthening trust in the system for managing distressed assets in Cyprus. The continuation of loan repayment campaigns, implementation of agreements with the banking sector, and cost control are forming the basis for further improvement in performance already in 2026.