Nicosia, Cyprus. The Cyprus Housing Finance Corporation (HFO) is expected to become fully independent from state-owned Cyprus asset management company Kedipes by the summer of 2026, its general director Christoforos Kaplanis said. He added that a broader technological upgrade is due for completion within 2027.
Independence timeline and technology project
Speaking to the Cyprus News Agency (CNA), Kaplanis said the organisation restarted its long-awaited technological upgrade on June 3, 2025, with the project structured in two phases. The first phase concerns the HFO’s operational independence from Kedipes, expected around the summer of 2026, while the second focuses on upgrading the corporation’s existing systems. The overall project, launched in 2025, is scheduled to be completed within roughly two years, by 2027.
Non-performing loans and borrower engagement
Kaplanis said the organisation’s strategic priority remains reducing its non-performing loan (NPL) portfolio, confirming that studies and preparatory processes are under way for the sale of those loans. He urged borrowers classified as non-performing to engage with the organisation to explore “mutually acceptable and sustainable solutions”.
Operational conditions and lending activity
Kaplanis said operational conditions are improving, noting that mortgage interest rates remain at “a very good level” and that customer service times at branches have returned to normal. He said 265 housing loans were approved in 2022, amounting to €29 million, rising to 372 loans worth €56 million in 2023 and to 440 loans totalling €68 million in 2024, adding that data for 2025 is not yet available.
Computer system independence
Kaplanis said that since 2009 the HFC computer system has operated under the cooperative computerisation company of the former cooperative sector. He said the organisation’s strategic goal is to have independence in its computer system, adding that as a banking institution it should have such independence.
What steps will you take if you are a borrower classified as non-performing and want to explore sustainable solutions with the HFO?
