Insider Economy KEDIPES generates income of €101m in first four months of operation

KEDIPES generates income of €101m in first four months of operation

Cyprus Asset Management Company (KEDIPES) generated income of €101 million in its first four months of operation.

The state-owned asset manager, was established following the sale of the former Cyprus Co-operative Bank to Hellenic Bank to manage the non-performing loans, real estate and other assets amounting to €8.2 billion that were not part of the transfer to Hellenic Bank, among which non-performing loans amounting to €7.4 billion.

Andreas Charalambous, President of KEDIPES and Director of the Finance Ministry’s Financial Stability Division said under the circumstances, the asset manager’s results were satisfactory.

He added that the first four months of operation were a transitional phase, as KEDIPES implemented a voluntary retirement scheme, while loan restructurings were frozen as SEDIPES, KEDIPES’ parent company did not have a license to operate as a credit acquiring company.

“We are seeing prospects. KEDIPES is operating in a very difficult environment but the signs say we are on track,” Charalambous said, adding KEDIPES’ mandate is to maximise the value for the Cypriot taxpayer.

Furthermore, he said KEDIPES will be monitored on a monthly basis by the EU’s competition watchdog, as the sale of the CCB was subsidised with state-aid amounting to €3.6 billion of which €3.2 in government bonds offered to Hellenic Bank.

According to data, KEDIPES’ income from the management of NPLs amounted to €28 million, whereas income from year-end loan installments by Municipalities amounted to €25 million.

Income from real estate management amounted to €37 million while additional other income amounted to €11 million.

Total cash outflows amounted to €90 million of which €56 million were one-off expenses involving the first instalment of the voluntary retirement scheme amounting to €43.5 million, €6.6 million in deposits protection levy, and other expenses amounting to €6 million.

Operating expenses amounted to €34 million, of which €11,3 million to Altmira asset management, KEDIPES’ loan servicer, €7.7 million for staff salaries and other expenditure amounting to €15 million.

KEDIPES’s cash reserves amounted to €81 million, of which €74 from the consideration paid by Hellenic Bank for the acquisition of the performing part of the CCB.

Lambros Papalamprianou said 2019 will be a pivotal year for KEDIPES as there will be more clarity in the income stemming from NPL and real estate management.

(Cyprus News Agency)

Top Stories

166 new cases of COVID-19 on Friday

The Health Ministry announced 166 new COVID-19 cases on 30 October, out of 3,672 laboratory tests, taking confirmed infections to 4,217. The break-down of new...

Samos island: two children dead from collapse of wall; six dead in Turkey’s Izmir area

Two children died when a wall fell on them on the island of Samos on Thursday, the first reported Greek casualties of an earthquake...

Protest outside Polish Embassy organized Saturday 15.30

A protest outside the Polish Embassy is being organized for tomorrow, Saturday at 15.30 in solidarity to the women in Poland since the government...

Seismologists warn of strong aftershocks to follow Samos earthquake

Seismologists warned that people should expect a series of strong aftershocks to follow the 6.7 Richter earthquake that hit the island of Samos and...

33-year-old arrested for stealing dogs

A 33-year-old man from Larnaca has been arrested in connection with a case of stealing animals. According to the police an arrest warrant was pending...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...