KEDIPES extends business plan to 2030 for full repayment of state aid

The Cyprus Asset Management Company (KEDIPES) has extended its business plan by three years, pushing its timeline to 2030, with the goal of fully repaying the €3.54 billion in state aid received in 2018.

According to Panayiotis Rougalas' article published in Kathimerini Cyprus in Greek, KEDIPES Chairman Lambros Papadopoulos said the company expects to significantly increase loan solutions for mortgages on primary residences by 2027, with the business plan set for completion by 2030.

Papadopoulos cited several reasons for the extension during the presentation of KEDIPES' second-quarter results for 2024. These included delays caused by repeated suspensions of the foreclosure framework, external challenges like the pandemic and rising interest rates, as well as geopolitical factors such as wars.

The extension, he said, will allow KEDIPES to reach its objective without rushing into loan sales, thus ensuring the repayment of the full €3.54 billion to the state.

Under its previous business plan, KEDIPES was set to conclude operations by 2027. However, as of September 26, 2024, the company made a cash payment of €40 million as part of its third-quarter repayment. This brings the total repayment for 2024 to €240 million. Since its inception in 2018, KEDIPES has repaid €1.4 billion in state aid.