Cyprus Asset Management Company KEDIPES, which operates the government's housing support scheme, has released an update on the programme's progress. According to the latest figures, 800 households have already been included in the Mortgage to Rent scheme out of 1,200 approved applications. The company also confirmed that it continues to receive and process new applications.
The programme, introduced as part of Cyprus' strategy to tackle non-performing loans, enables vulnerable borrowers to remain in their primary residence. Instead of continuing mortgage repayments, eligible participants become tenants under a government-backed rental arrangement, allowing them to stay in their homes. Applications for the scheme will remain open until the end of July 2026, giving eligible homeowners additional time to apply.
How KEDIPES is repaying state support
Alongside implementing the housing programme, KEDIPES continues to meet its financial obligations to the state. The company announced that it transferred a further €50 million in cash to the government following the second quarter of 2026. The payment forms part of the repayment of the financial assistance previously provided to the former Cooperative Bank.
Since KEDIPES began operations in 2018, the total amount returned to the state has reached €1.87 billion. Of this, €1.76 billion has been paid directly in cash. A further €97 million has been allocated to finance the Mortgage to Rent programme, enabling 800 residential properties to be incorporated into the scheme. An additional €13 million has been used to meet other financial obligations.
Financial reserves and future plans
The company continues to maintain sufficient liquidity to support its ongoing operations. KEDIPES has reserved €60 million to finance the Mortgage to Rent programme. Another €60 million has been set aside for payments to Eurobank Limited relating to the acquisition of a portfolio of non-performing loans that had previously been covered under the state's guarantee scheme.
That guarantee scheme officially concluded on 30 January 2026, marking an important milestone in resolving the outstanding liabilities inherited from the former Cooperative Bank. According to KEDIPES management, the programme's net cost is expected to amount to approximately €74 million—around half of the original estimate made in 2018.
Experts note that the Mortgage to Rent scheme has become one of Cyprus' most important social support mechanisms since the banking crisis. It helps reduce the volume of non-performing loans, protects families from losing their primary residence, and eases pressure on the judicial system.
With interest rates remaining high and the cost of living continuing to rise, demand for the programme remains strong among borrowers. The Cypriot authorities continue to refine homeowner support mechanisms, placing particular emphasis on protecting the most vulnerable groups and maintaining the country's financial stability.