State-owned asset management company KEDIPES achieved significant financial success in 2023, registering cash inflows of €130 million in the fourth quarter and totaling €440 million for the year. Lambros Papadopoulos, the President of KEDIPES, revealed these figures on Tuesday. He highlighted that payments to the government have now reached €1.16 billion, covering one third of the state aid received in 2018. This aid was part of the sale of the now-defunct Cyprus Cooperative Bank.

During a press conference, Papadopoulos outlined the successful launch of the government-funded “rent-to-installment” scheme, which has already attracted approximately 1,300 applications, 1,000 of which meet the eligibility criteria. This scheme, managed by KEDIPES, is designed to help vulnerable non-performing borrowers retain their homes.

He also announced the continuation of a plan to subsidize high interest rates for restructured credit facilities linked to the ECB’s Euribor. In 2023, this initiative helped borrowers with loans totaling €94 million to settle their arrears and qualify for a loan pool of €380 million.

Additionally, Papadopoulos introduced a new scheme for the complete repayment of loans secured by primary residences valued under €350,000. This scheme is based on the property's value, rather than the loan balance.

“2023 marks the year with the highest cash inflows since KEDIPES was established in 2018, with revenues amounting to €441 million compared to €439 million in 2022,” Papadopoulos stated.

He emphasized that KEDIPES is dedicated to repaying the state aid it received in 2018 as swiftly as possible, despite the growing challenges to meet this goal.

KEDIPES was formed as a residual entity of the defunct CCB, whose performing loans and other assets were sold to Hellenic Bank in 2018, alongside the state aid of €3.5 billion. The primary objective of KEDIPES has been to manage non-performing loans and real estate assets to repay the state.

Papadopoulos, while presenting the financial results of KEDIPES, mentioned that since its inception, the company has achieved total cash inflows of €2.1 billion by the end of 2023, with total deleveraging reaching €3.2 billion.

The assets under management by the end of 2023 have declined to €5.05 billion, down from €8.25 billion in 2018, with a deleverage ratio of 40%.

He noted that KEDIPES currently manages performing loans worth approximately €710 million, immovable property valued at €470 million, and has €164 million in cash. Of this cash, €60 million is earmarked for the “rent-to-installment” scheme payments.

Papadopoulos concluded by stating that KEDIPES possesses “good quality assets worth €1.3 billion, which are expected to generate significant cash inflows in 2024 and the subsequent years.”