The Ministry of Finance has welcomed the conclusion of the agreements between The Cyprus Asset Management Company Ltd (KEDIPES) and Eurobank Limited announced on Tuesday, noting that their termination of the Asset Protection Scheme (APS) limits the cost of the agreements to a level significantly lower than the 2018 estimates and releases the Republic of Cyprus from guarantees exceeding €1 billion.
As the Ministry notes in its statement, the original 2018 agreements provided substantial guarantees by the Republic of Cyprus to the then Hellenic Bank, particularly in relation to the Loan Guarantee Scheme, which covered potential losses on loans amounting to €2.6 billion.
KEDIPES announced on Tuesday, 3 February, during a press conference on the financial results of the second half of 2025, that the company concluded the agreements with Eurobank Limited on January 30, 2026, covering the termination of the APS, the repurchase of a portfolio of non-performing loans, and the settlement of obligations and guarantees arising from the 2018 asset transfer agreement.
According to KEDIPES, these agreements mark the completion of a long and demanding process and achieve the definitive termination of guarantees granted in 2018, while limiting the net cost of the APS to €74 million, around half of the original 2018 baseline estimate.
The Ministry notes that, although KEDIPES fully complied with its obligations under the original 2018 agreements, without the state guarantee being activated, the cost of the 2018 agreements indirectly burdened the Cypriot taxpayer by limiting the recovery of the state aid granted to the former Cooperative Cyprus Bank, the Ministry notes.
“The termination of the agreements, achieved through the close and effective cooperation between KEDIPES and the Ministry of Finance and having received the relevant approval of the European Commission, limits the cost of the agreements to a level significantly lower than the 2018 estimates. At the same time, it releases the Republic of Cyprus from guarantees amounting to more than €1 billion, thereby eliminating the associated risks,” the Ministry’s statement said.
Meanwhile, a loan portfolio and real estate management agreement valued at €361 million was signed by Themis Portfolio Management Limited with KEDIPES and Creditum Holdings Ltd on January 30, 2026, immediately after KEDIPES acquired the portfolio from Eurobank Cyprus Limited through the special purpose entity, Creditum Holdings Ltd, according to a press release by Themis.
(Source: CNA)
