Regular cash inflows of the Cyprus Asset Management Company (KEDIPES) amounted to €162.9 million in the first half of 2026, up 0.9% compared with the first half of 2025 (€161.5 million). At the same time, cash repayments of state aid totalled €1.76 billion, of which €80 million was paid during the first six months of the current year (€50 million in the second quarter).
According to KEDIPES Chairman Lambros Papadopoulos, the company plans to repay an additional €120 million to the state by the end of 2026. As a result, total state aid repayments are expected to exceed €2 billion in the fourth quarter of 2026.
As of 4 September 2026, total state aid repayments since KEDIPES began operations in 2018 had reached €1.93 billion. This amount includes:
- €1.76 billion — cash repayment of state aid;
- €48 million — transfer of 247 properties to the state;
- €110 million — expenditure on the implementation of the “Mortgage-to-Rent” scheme;
- €13 million — other payments, including payments under the “Estia” scheme and the Central Agency for Equal Distribution of Burdens.
KEDIPES therefore continues to gradually reduce its asset portfolio and repay the state aid received following the banking crisis.
KEDIPES abandons loan portfolio sales as its main strategy
KEDIPES’s updated business plan sets 2030 as the company’s main operating horizon. The base-case scenario no longer provides for the active sale of loan portfolios. According to Papadopoulos, such a strategy could have a negative impact on public expenditure given the statistical treatment of KEDIPES’s activities.
The main focus is now on the organic reduction of the portfolio, meaning its gradual decrease through the management of loans and assets. The base-case scenario provides for:
- repayment of 90% of state aid — €3.2 billion — by the end of 2030;
- retention of a portfolio with a nominal value of €2.4 billion;
- around €0.5 billion of the remaining portfolio consisting of performing loans and properties not related to the “Mortgage-to-Rent” scheme;
- the remaining approximately €1.9 billion consisting of non-performing loans, most of which are unsecured.
KEDIPES will not cease operations entirely after 2030. Once the main plan has been completed, the company will still need to manage the remaining portfolio. As Papadopoulos noted, around 90% of the work will have been completed by then, while the remaining 10% will be reduced gradually. In addition, the 14-year “Mortgage-to-Rent” scheme and the “Estia” programme will continue to operate.
247 properties have already been transferred to the state
One important development was the transfer to the state of a portfolio of 247 properties belonging to the former Cyprus Cooperative Bank, with a total value of €48 million. The transfer took place following a relevant decision by the Council of Ministers. At the same time, the process of transferring another 172 properties with an estimated value of €81 million is continuing.
According to KEDIPES, from 1 September 2018 to 30 June 2026, the company’s total cash inflows reached €3.097 billion. Proceeds from the management of loans and properties amounted to €2.951 billion, or 36.7% of the nominal value of the original loan and property portfolio of €8.051 billion.
Mortgage-to-Rent scheme
Strong interest also continues in the “Mortgage-to-Rent” scheme, which allows homes to be included in a special support mechanism. Between 4 May and 31 July 2026, 929 new applications were submitted, bringing the total number since the programme was launched in 2023 to 4,269. Due to strong demand, the Ministry of Finance extended the application deadline again, this time until 30 September 2026.
To date, KEDIPES has sent 1,268 approval letters to applicants. A total of 896 properties have been included in the scheme. The overall number of properties participating in the programme is expected to exceed 2,000. KEDIPES maintains a cash reserve of €60 million to finance the scheme.
In January 2026, the company also concluded agreements with Eurobank to terminate the loan guarantee scheme and repurchase a portfolio of non-performing loans previously covered by that scheme. As of 30 June 2026, total repurchase costs amounted to €47 million, while net proceeds from managing the acquired portfolio reached €20 million. The positive impact on the financial result for the first half of the year was €7 million.
KEDIPES’s updated strategy provides for a shift away from large-scale loan portfolio sales towards their gradual reduction through in-house management. The company intends to continue repaying state aid as quickly as possible while efficiently managing the remaining assets.