Kedipes expects state repayments to exceed €2bn by end of 2026

Nicosia, Cyprus. State-owned asset management company Kedipes expects its repayments to the government to exceed €2 billion during the final quarter of 2026, as it shifts away from loan portfolio sales and focuses on recoveries and early loan repayments.

Chairman Lambros Papadopoulos said the company would return a further €120 million in cash to the state before the end of the year.

State aid repayments

Total state aid repayments had reached €1.93 billion by September 4, Papadopoulos said. The amount included €1.76 billion in cash, the transfer of 247 properties valued at €48 million, €110 million in expenditure under the mortgage-to-rent scheme, and a further €13 million through Estia and other arrangements.

Cash inflows and expenses

During the first half of 2026, Kedipes generated regular cash inflows of €162.9 million, up 0.9 per cent from €161.5 million in the corresponding period of 2025, despite the continued reduction of its portfolio.

Papadopoulos said inflows were supported by early repayment schemes covering performing and non-performing loans. Progress in non-consensual recoveries, however, was below the company’s business plan.

Since beginning operations on September 1, 2018, Kedipes has recorded cumulative cash inflows of €3.1 billion. Of that total, €2.95 billion came from managing loans and properties, equal to 36.7 per cent of the portfolio’s initial nominal value of €8.05 billion.

Operating and asset management expenses declined by 11.6 per cent to €43 million in the first six months of 2026, from €48.6 million in the same period of 2025.

Net cash flow after expenses and other obligations amounted to €74.4 million, down 31.2 per cent from €108.2 million a year earlier. Cumulative net cash flow since 2018 reached €1.86 billion.

Restructuring solutions

Restructuring and recovery solutions completed through servicing company doValue totalled €304 million during the period, compared with €321 million in the first half of 2025.

Since Kedipes began operations, total solutions have reached €5.6 billion, representing 76 per cent of the initial loan balance of €7.37 billion.