KEDIPES to return €4.6m interest to compliant debtors

The Cyprus Asset Management Company Ltd (KEDIPES) will return interest totalling €4.6m for the first half of 2023, to borrowers who restructured their credit facilities as part of the Interest Subsidy Plan.

According to a KEDIPES press release, this move serves as a reward for complying with the repayment schedule of their credit facilities for the year 2023.

It said a total of 69% of potentially eligible loans benefited from the interest subsidy, which is based on the European Central Bank's (ECB) base interest rate. During the first half of the year, loan repayments amounting to €16.2m were received, including €3.7m from loans totalling €79m that were restructured to participate in the Plan.

KEIDIPES expressed satisfaction with the initial results of the Interest Subsidy Plan, which was announced last March following successive increases in the ECB's base interest rate.

The number of eligible loans in total reached 3,338, with the remaining loans benefiting from the subsidy amounting of €390m as of 30 June 2023.

During the course of the Plan, loans totalling €79m that were in arrears as of 31 December 2022, covered their outstanding delays and were added to the scope of interest return as of 30 June 2023. Consequently, 69% of potentially eligible loans benefited from the interest subsidy, compared to 52% on 31 December 2022.

"The interest return amount is calculated at €4.6 million for the first half of 2023 or 41% of the interest that would have been charged before the return," noted the institution.

According to KEDIPES, the affected accounts will be credited in the coming days.

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