Kedipes in Cyprus settles €5.6bn in loans — Cyprus Mail
In Cyprus, state asset manager Kedipes settled non-performing loans with a nominal value of €5.60 billion, representing 76% of its initial €7.37 billion portfolio. The main mechanisms were debt restructuring, full settlement by agreement, and voluntary transfer of real estate in exchange for debt repayment, Cyprus Mail reports.
Agreements instead of auctions
Kedipes' report for the period up to June 2026 states that restructurings covered loans worth €2.03 billion, or 36.3% of the total value of settled loans. Another €1.39 billion, or 24.9%, accounted for full debt settlements.
Voluntary exchanges of real estate for debt repayment amounted to €1.25 billion, or 22.4%. At the same time, property obtained after auctions corresponded to €362.8 million in nominal loan value, or 6.5% of the total. Kedipes also recorded €449 million in proceeds from overdue loans and €108.5 million through property transfers under the Rent Against Instalment programme.
These figures reflect the nominal value of loans for which Kedipes found a solution, rather than the share of primary residences sold at auction. Voluntary transfer of property may end a debt dispute, but borrowers need to determine whether it fully clears the remaining debt and how it affects other collateral or guarantors.
Rent instead of ownership
Under the Rent Against Instalment programme for vulnerable homeowners, Kedipes acquires ownership of the primary residence. The lender receives 65% of its assessed market value and writes off the remaining mortgage debt insofar as it is not secured by other collateral. The former owner remains a tenant: the rent is covered by the state, while the resident pays €1 per year.
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The standard lease term is 14 years, while lifelong residence is provided for certain cases involving elderly tenants. The home can be repurchased from the fifth to the fourteenth year of the lease by the former owner or their first-degree relative at the price specified in the contract.
More than 4,500 applications were submitted to the programme before the September 30 deadline. A total of 1,307 applicants were approved, and 978 homes were included in the scheme. Kedipes expects the final number of homes in the programme to exceed 2,000.
Central bank data
An analysis by the Central Bank of Cyprus, released in September, showed that from January 2022 to March 2026, primary residences accounted for 6% of completed foreclosure procedures. Agricultural land accounted for 61% of such cases. About 30% of cases in which foreclosure notices were sent ended in voluntary agreements, while another 5% remained at the negotiation stage.
The Cypriot foreclosure procedure includes an assessment of restructuring possibilities and formal notices. Eligible borrowers may seek assistance from the financial ombudsman or challenge the procedure in court, but filing a court case does not automatically suspend foreclosure.
