The Cyprus Asset Management Company Ltd (KEDIPES) recorded a marked improvement in its financial performance in the second half of 2025, supported by increased restructuring and recovery solutions, stronger cash inflows and the completion of key agreements that significantly reduce the cost to the state.
Speaking at a press conference on 3 February, Chairman of the Board of Directors Lambros Papadopoulos said results in the second half of the year were substantially better than in the first, noting that total restructuring and recovery solutions rose by 22% to €391 million, while cash inflows increased by 29% to €209 million.
Among the positive developments, he said, were strong collections from campaigns targeting both performing and non-performing loans, which are expected to continue in 2026. At the same time, he acknowledged ongoing delays in portfolio sales and in non-consensual solutions.
Referring to KEDIPES’ overall performance since the start of its operations, Papadopoulos said asset deleveraging from September 1, 2018 to December 31, 2025 reached 51%, excluding contractual loan interest. Cumulative cash inflows over the period amounted to €2.935 billion, while total repayment of state aid stood at €1.746 billion at the end of 2025. Total assets were reported at €5.5 billion.
"The objective of the business plan remains the repayment of state aid amounting to €3.54 billion,” he stressed.
Particular emphasis was placed on the agreements concluded with Eurobank Limited on January 30, 2026, covering the termination of the Asset Protection Scheme (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 Papadopoulos, 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 repurchase of non-performing loans was completed at a price of €110 million for loans with a contractual value of €287 million. Papadopoulos explained that the reduction of around €70 million from the initial price reflects strong cash inflows generated by the portfolio after the reference date.
On the “Mortgage to Rent” scheme, he said 921 applications have so far been approved, with 471 properties already acquired. The scheme remains within the revised target of 1,600 approvals, with the possibility of reaching up to 1,800.
Presenting the financial figures, Director of Financial Management Lambros Papalambrianou said regular cash inflows in the second half of 2025 reached €209 million, while annual inflows amounted to €370.5 million. He noted that 2025 results did not include inflows from loan portfolio sales, unlike 2024. Since inception, cumulative cash inflows total €2.935 billion, mainly from loan and real estate management.
Operating and asset management expenses were further reduced, amounting to €48.8 million in the second half and €97.4 million for the full year. Total restructuring and recovery solutions through doValue credit management company reached €391 million in the second half and €712 million for the year, bringing cumulative solutions since 2018 to €5.297 billion.
KEDIPES also reiterated its support for maintaining the current foreclosure framework, noting that more than 40% of foreclosure cases over the past 12 months resulted in consensual solutions. In 2025, 1,060 foreclosure cases were initiated, with only 12% successfully completed, while one-third were cancelled following agreement with borrowers.
Finally, it was confirmed that the “Ledra II” plan for the sale of performing loans of around €50 million is at an advanced stage, with completion expected in the first half of 2026.
(Source: CNA)
