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Kedipes, the state-owned asset management company, has recently entered into an agreement with the Bank of Cyprus

Kedipes, the state-owned asset management company, has recently entered into an agreement with the Bank of Cyprus (BoC) for the sale of a portfolio comprising serviced and up-to-date restructured loans. The total gross accounting value of this portfolio, as of December 31, 2022, stands at €58.4 million. In a statement, Kedipes highlighted that this strategic move is part of its broader plan to leverage the sale of loan portfolios as a significant tool in reducing its managed portfolio.

Kedipes, the state-owned asset management company, has recently entered into an agreement with the Bank of Cyprus

The transaction, according to Kedipes, is not anticipated to have a substantial impact on its financial standing. Instead, it is viewed as a proactive step to maximize the repayment of state aid granted by the Republic of Cyprus to the Cooperative Cyprus Bank in 2018. The company has already paid a total sum of €1.16 billion to the Republic of Cyprus as part of the previously mentioned state aid.


The completion of the transaction is expected to occur in the first quarter of 2024, contingent upon obtaining relevant regulatory approvals. Kedipes has notified the involved borrowers, guarantors, and insurance providers about the intention to sell the loans included in the agreement, as mandated by Article 18(1)(b) of the Credit Acquisitions and Related Matters Law of 2015 (Law 169(I)/2015).


COMPANY FORMATION &   DOMICILATION SERVICES

The Bank of Cyprus also issued a corresponding announcement, emphasizing that this specific transaction aligns with the bank's strategy for a medium-term increase in its serviced loan portfolio. Both parties seem to be strategically positioning themselves in the financial landscape, with Kedipes employing asset sales to deleverage its portfolio and the Bank of Cyprus aiming for growth in its serviced loan portfolio over the medium term.

By fLEXI tEAM

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