LAMBROS PAPADOPOULOS - SO FAR KEDIPES HAS RESOLVED 30,000 LOANS - Filenews 1/3 by Charalambos Zakos
KEDIPES has so far resolved half of the loans it received, while returning almost half of the state aid it received, as the chairman of its Board of Directors, Lambros Papadopoulos, states in an interview with "F", already covering the fiscal estimate made in 2018.
Mr. Papadopoulos, among other things, referred to the settlement of a number of pending issues that pre-existed, such as the renegotiation of the management agreement with doValue, formerly Altamira, but also the completion of the agreement with Eurobank, which definitively closed the 2018 guarantee chapter.
In addition, the Chairman of the Board of Directors analyzes the way KEDIPES operates, underlining that their work has succeeded due to the long-standing absence of political interventions, while at the same time noting that the demonization of credit acquiring companies does not reflect reality and involves serious risks for foreign investments.
At the same time, he does not shy away from commenting on the parties' recent proposals for changes in the foreclosure framework, warning that any change should ensure that it will not jeopardize the balance of the system and the ability of KEDIPES to repay state aid.
Regarding the future of KEDIPES now, Mr. Papadopoulos revealed that some of its functions will continue after 2030, such as the Rent Against Instalment Plan.
-Talk to us, Mr. Papadopoulos, about KEDIPES and its importance, both for the state and the taxpayers as well as for the borrowers
The Cyprus Asset Management Company – KEDIPES is now in its eighth year of operation, as of September 2018. Its purpose is to manage the assets of the former Cyprus Cooperative Bank (CCB), which initially amounted to €8.2 billion.
It operates on the basis of a specific framework of commitments, agreed between the Republic of Cyprus and the European Commission's Directorate-General for Competition, with the main objective of maximizing the repayment of the €3.54 billion state aid given to CCB in 2018 as soon as possible. These commitments concern both KEDIPES and the relevant legislative framework governing the management of Non-Performing Loans (NPLs).
Today, despite the challenges that have characterized the economy in recent years, such as the pandemic, KEDIPES shows steady progress and measurable positive results with immediate benefits, both for the state coffers and for thousands of borrowers. Within these eight years, we managed to deleverage half of the portfolio, with total loan solutions of more than €5 billion, of which loan restructurings amounted to €2 billion. and in cash inflows close to €3 billion.
It is very important that 30,000 loans have been resolved, i.e. half of those we had undertaken, for the benefit of a large portion of borrowers. In fact, more than 90% of the solutions were consensual, highlighting the importance that the company gives to the cooperative borrower.
In 2025 alone, solutions of more than €700 million have been made, increased by 10% compared to 2024. I also mention that for these solutions, write-offs (mainly interest) amounting to €2.3 billion have been made.
These are important facts in the recent discussions on the legislative framework of NPEs and the alleged lack of progress in their management and show that the relevant claims are not true.
At the same time, €1.75 billion has been returned. from state aid to the state coffers, while if taxes (€150m) and payments of obligations of the former CCB (€280m) are added, the amount is close to €2.2 billion.
Apart from the numbers, however, we have settled a number of outstanding issues that we had 'inherited' in 2018, as a result of the then agreements for the former CCB. A good first example is the renegotiation of the portfolio management agreement with doValue (then Altamira) in 2022. The renegotiation changed (as of the beginning of 2020) the way doValue's remuneration was paid, leading to a remuneration system, where 73% depends on its performance in terms of managing KEDIPES' portfolio, as opposed to a much lower percentage that existed in the previous agreement, giving doValue the right incentive to bring the good results today. Equally important are the recent agreements with Eurobank.
-Explain to us better the importance of the latest announcements with Eurobank
On 30 January 2026, the agreements between KEDIPES and Eurobank were finalised, concerning the definitive termination of the Loan Guarantee Scheme (LSA), the buy-back of the relevant NPL portfolio and the termination of the obligations and collateral guarantees in relation to the Asset Transfer Agreement (ISS), which led to the sale of CCB's banking operations to Hellenic Bank in 2018.
With their completion, the chapter of obligations and state guarantees of 2018 is definitively closed, both for KEDIPES and for the Republic of Cyprus. These guarantees were in January 2026 in excess of €1 billion, for the CCA, while for the SBS, important lawsuits, liabilities and guarantees related to the €4 billion portfolio were also terminated. loans that were transferred in 2018, a huge financial burden both for KEDIPES, which consumed significant human resources, and for the state.
The termination of the CCA limited the net cost to €74m, about half of the initial forecasts (€155m), while I note that during the pandemic these forecasts exceeded €250m. Without the termination of the agreements, the cost for KEDIPES would probably be greater, negatively affecting the repayments of state aid, adding significant risk to KEDIPES, for provisions and losses that essentially do not concern it or are not directly managed.
The tool of foreclosures and the difficult part of loans
-How do you comment, Mr. Papadopoulos, on the recent proposals of the parties on the issues of changing the legislative framework on foreclosures?
The recent proposals of the parliamentary parties for changes in the framework of foreclosures for the protection of the primary residence bring back to the public debate a particularly sensitive issue, as well as other proposals concerning NPEs.
Our experience in recent years and after the difficult period of 2020-2022, with the continuous universal suspensions, shows that the current framework is functional, as reflected by the results of KEDIPES that I mention above.
We have repeatedly said that, for KEDIPES, the tool of foreclosure, even for primary residences, is not an end in itself but a lever of pressure to mobilize all borrowers, some after 15-20 years, to find a consensual solution. We understand that the number of auctions of primary residences may now be frightening, but historically 70% of them result in a consensual solution and only 10% in a sale, while for the remaining 20% an effort continues to be made to find consensual solutions.
Without this tool, we will not be able to resolve a difficult part of our portfolio, where despite the long-standing efforts to reach a solution, many remain uncooperative and unfortunately a large portion of them are not due to financial difficulties.
The significant success of the Rent Against Instalment Scheme, in which KEDIPES is the implementing body and where it is expected that about 1600-1800 applications will be approved, is a very good example of how vulnerable borrowers have been protected by the state over time, through Schemes such as ESTIA and OIKIA.
Any attempt to amend the foreclosure framework must ensure that the balance of the system of both Credit Acquiring Companies such as KEDIPES and the general banking system will not be jeopardized. The proposed regulations should protect those who are really in a vulnerable position, but without creating "windows" that will allow strategic defaulters to benefit at the expense of the economy and consistent or vulnerable borrowers.
-And the criticism that credit acquiring companies are receiving and how does KEDIPES relate to them?
Criticism of the Credit Acquiring Companies and their shareholders is unfortunately to be expected at this time, since their subject concerns sensitive issues, such as non-performing loans and foreclosures.
In 2018, the banking system immediately needed a rationalization of its balance sheets and know-how to be able to deal with the problem of "red loans" that accumulated after the 2010-2013 crisis. International funds, such as Pimco, Apollo and Cerberus, unburdened banks' balance sheets and allowed the banking system to return to normality. Their current "demonization" does not reflect reality, as they do not operate arbitrarily, there is a strict regulatory framework and supervision by the Central Bank.
As KEDIPES we are a member of the Association of Credit Acquiring Companies and we are governed by the same legislations. Any hasty or wrong decisions taken targeting these companies will also affect the work of KEDIPES, which we remind you directly concerns the state coffers, with the risk of a significant reduction in our annual repayments over time, amounting to €200 million. – €300 million, against state aid.
The transparency that governs the operation of KEDIPES could perhaps set an example for other companies, helping to remove the unnecessary targeting of investors, especially in a small economy like ours, which seeks to continue attracting foreign investment.
The stability of the legislative framework is essential for the development of the economy. The opposite situation prevents the attraction of investors, both domestic and foreign, in the future, since there is a fear that rules are being changed after the fact.
Stability and good cooperation
-What do you think is the reason for this success of KEDIPES?
Although KEDIPES belongs to the Republic of Cyprus, it operates according to the standards of a private company. Of particular importance is the stability that characterizes the way it operates, with the excellent cooperation between the Board of Directors (where the terms of office of the members have been successively renewed), the Executive Directorate and the Ministry of Finance as the representative of the Republic of Cyprus, the main shareholder of KEDIPES.
The chronic absence of political interventions has also contributed decisively to the success of its work. Equally important is the pillar of transparency that governs KEDIPES, with the detailed presentation of its results on a quarterly basis.
The future and the work of KEDIPES after 2030
-KEDIPES, Mrs. Papadopoulos, has spoken about a Business Plan until 2030. As president, do you think that KEDIPES could continue its work in a different way and goal in the future?
I distinctly remember in 2019, in our first meeting as the new Board of Directors, with the various institutions (European Central Bank, Directorate General for Competition of the European Commission, International Monetary Fund, European Commission, Central Bank of Cyprus), there was so much distrust in the ability of KEDIPES to fulfil its goal, that we had accepted the question of when our expiration date is, even using the 'unfortunate' term 'when is your death date?'.
Seven years later, we are proud that we have not only won the trust of internal and external institutions, a trust that, as you know, requires time, consistency, professionalism and above all results to be earned, we have also managed to repay half of the state aid, which was set for financial management in 2018 and as the final estimate.
This was achieved through strict compliance with the commitments made in 2018, which, as mentioned above, included the 2018 legislative regulations on Non-Performing Loans.
Personally, I am afraid that all this effort will not be wasted with hasty legislative interventions and that the trust of the institutions in the ability of KEDIPES to fulfil its work will be lost, with perhaps unpredictable consequences.
Today, we are no longer talking about the 'expiration' of KEDIPES but about the completion of an important business plan and the achievement of the goal of full repayment of state aid by 2030 or even a little later, if this is deemed necessary to achieve this goal.
Some functions of KEDIPES, such as the management of the homes of the Rent Against Instalment Plan and a small part of the portfolio are certain to continue to exist after 2030, but the main mission of KEDIPES will have been carried out by then.
