The Cyprus Asset Management Company (Kedipes) has extended its life cycle by three years, with the aim of repaying €3.54 billion in state aid by 2030.
This extension followed delays caused by inflation, geopolitical tensions, and the pandemic, said Kedipes Chairman Lambros Papadopoulos at a news conference. The business plan had an expiry date of 2027, which has now been extended to 2030, he said, explaining that external factors and divestment suspensions had delayed full repayment.
“The goal,” Papadopoulos said, “is achievable with this extension,” adding that Kedipes shouldn’t rush into selling portfolios at low prices in order to close operations. Since 2018, Kedipes has repaid €1.36 billion, raising the repayment rate, including property transfers to the government, to 42 per cent.
Papadopoulos also introduced the ‘Ledra 2’ project, which involves selling part of the loan portfolio, including loans within the ‘Estia’ Plan. He clarified that borrowers’ rights would not be affected. The project covers loans worth €80 million, with a possible partial sale under review.
Furthermore, Papadopoulos emphasised “positive results” of a campaign targeting loans with first-home collateral below €350,000, predicting cash inflows of €40-50 million for the whole 2024, covering loans valued at €150-180 million, including restructurings.
For Q2, Kedipes reported cash inflows of €111 million, bringing the first half of the year to €256 million. Lending solutions for Q2 totalled €186 million, with 90 per cent from restructuring.
Cumulative cash inflows reached €2.36 billion, while loans under management fell to €5.7 billion, excluding interest. The real estate portfolio was valued at €411 million, with cash reserves at €152 million.
Papadopoulos noted that “non-performing loans amounted to €663 million, when including loans without delays of over 90 days.” If these loans were also include the figure approached €1 billion.”
The mortgage-to-rent scheme saw 3,095 applications, far exceeding expectations, with the first approval letters already sent.
Responding to questions, Kedipes CEO Marios Papadopoulos said government schemes were nearing completion and that generous loan repayment schemes for primary residence mortgages would not be available for much longer.
Lambros Papadopoulos clarified that the 5,000-strong housing loan portfolio wasn’t classed as strategic defaults. “Certainly not all of them,” he said, “but there are a significant number who never felt the pressure to come in for a consensual solution.”
“We have provided solutions,” he added, “and now the margins are narrowing.”
