Nicosia, Cyprus. The Housing Finance Corporation has launched a tender for external advisory services to support the sale of a non-performing loan portfolio estimated at around €135 million.
The advisory contract is valued at €1.3 million and is scheduled to run for 20 months, according to the tender documents.
Portfolio criteria
HFC general manager Christoforos Kaplanis told the Cyprus News Agency that the proposed portfolio was identified during preparation of the organisation’s 2026 budget.
Loans included in the portfolio had to be classified as non-performing, while either the underlying property had to be valued at more than €250,000 or the borrower had to be in arrears for more than 96 instalments, equivalent to eight years.
Based on those criteria, the portfolio selected for sale was estimated at around €135 million, out of a total non-performing loan portfolio of approximately €270 million at the time the 2026 budget was being prepared.
Reduction efforts
Kaplanis said HFC had reduced its stock of bad loans through its own efforts and the use of government support schemes.
Non-performing loans declined to €257 million by the end of 2025, according to the organisation’s audited financial statements.
Strategic objective
Kaplanis said the measure was essential to strengthen HFC’s position within Cyprus’ financial system and allow it to continue its statutory mission of financing home purchases, particularly for low- and middle-income families.
He said efforts to secure further solutions for borrowers were continuing.
HFC is proceeding with its strategic commitment to reduce its non-performing loan portfolio, which represents a significant share of its lending book and consists largely of older loans, Kaplanis said.