KEDIPES: €1b repaid to the state so far

The Cyprus Asset Management Company (KEDIPES) has repaid €1 billion of the state aid received by the former Cyprus Cooperative Bank since the start of its operations five years ago.

According to the Chairman of KEDIPES’ Board of Directors, Lambros Papadopoulos: "The amount of one billion in cash is considered satisfactory, taking into account the significant internal and external challenges that the company has faced since the start of its operations.”

Papadopoulos noted that in addition, real estate worth almost €140m will also be transferred to the state soon.

In more detail, a €60m payment was made in the first quarter of the year, followed by another €60m on 15 June, which brought the total amount repaid to €1b.

KEDIPES was established following the sale of the former Cyprus Cooperative Bank (CCB) to Hellenic Bank, with a mandate to wind down non-performing exposures held by the CCB. KEDIPES’ aim is to manage these loans and real estate with a view to repay €3.5b of state aid paid by the Cypriot government to facilitate the transaction.

According to Papadopoulos, KEDIPES also maintains additional cash reserves of approximately €150m, including €60m related to possible future real estate purchases, within the framework of the "Mortgage to Rent" Scheme. For the implementation of the Scheme, a positive response from the European Commission's Directorate-General for Competition is expected soon, Papadopoulos said.

KEDIPES’ Chairman made special reference to the ongoing suspension of foreclosures, saying this had seriously impacted on the company’s cash inflow.

"We are concerned about the law proposals that are in the foreground at this time which concern changes to the legal framework governing foreclosures, with the aim of suspending/discontinuing the foreclosure process on the basis of legal proceedings for reasons such as disputing the balance of the debt," said Papadopoulos.

He reiterated KEDIPES’ position during parliamentary debates on the matter, which is that the proposed amendments will deprive KEDIPES of the possibility of effectively using the tool of foreclosures, where deemed necessary, and consequently will have a negative impact on cash inflows, which in turn will affect KEDIPES’ ability to repay the state aid it owes.