The Cyprus Asset Management Company (KEDIPES) has succeeded in concluding an agreement with Bank of Cyprus, under which it sold an impressive volume of serviced and topically restructured loans.
In particular, loans worth €58.4 million (as of the reporting date - December 31, 2022) were transferred to the portfolio of the largest financial institution in Cyprus.
KEDIPES said that this transaction is part of its strategic plans to sell loan portfolios as an important tool for deleveraging. Namely, the reimbursement of the state aid granted by the Cypriot government to the Cooperative Bank in 2018. By the way, to date, the company has repaid an amount of €1.16 billion to the state.
KEDIPES also mentioned that the completion of this transaction will take place during the first quarter of 2024. The exact timing depends on obtaining the relevant regulatory approvals.
KEDIPES emphasized that the borrowers, guarantors and insurance companies that were transferred under the agreement to Bank of Cyprus were notified in writing of the intention to sell their loans.
Finally, a similar statement was made by Bank of Cyprus, which noted that this particular transaction supports the bank's strategy to increase its serviced loan portfolio in the medium term.