The asset management company KEDIPES announced the payment of another tranche of €50 million as part of the repayment of state aid received by the former Cooperative Bank.
Results Over 7 Years
Since KEDIPES began operations in 2018, the total repayments to the state have reached €1.66 billion. Of this:
- €1.62 billion was returned in cash,
- €30 million was allocated to finance the Mortgage-to-Rent scheme,
- €10 million was directed toward related obligations, including participation in the Estia project.
This confirms that the company is fulfilling its key mission — repaying the funds provided by the state as a bailout package for the banking sector.
Supporting Vulnerable Households
Beyond repayments, KEDIPES plays an important social role as the operator of the Mortgage-to-Rent scheme, which allows people who can no longer service their loans to keep their homes. To date, 254 properties have been included in the program, with company expenses in this area reaching €30 million.
This scheme is particularly relevant amid rising interest rates in the eurozone and the growing number of families struggling with mortgage repayments.
Financial Stability and Reserves
According to the report, KEDIPES currently holds €90 million in cash reserves. These funds are earmarked for further financing of the Mortgage-to-Rent program, underscoring the project’s long-term sustainability.
Economists note that the gradual reduction of debt, combined with the implementation of social initiatives, makes the organization a key instrument for stabilizing Cyprus’s financial system.
Outlook
Forecasts suggest that if the current pace of repayments continues, Cyprus will be able to significantly reduce its obligations by the end of the decade, stemming from the collapse of the Cooperative Bank. Authorities expect that by 2027, a large portion of the state aid will be repaid to the budget, while support programs for vulnerable households will continue to expand.