Insider Business KEDIPES proceeds plunge by 35.6% due to coronavirus pandemic

KEDIPES proceeds plunge by 35.6% due to coronavirus pandemic

Revenue of KEDIPES, the state-owned asset management company plunged by 35.6% in the first quarter of 2020 compared with Q4 of 2019, due to the coronavirus pandemic, while low income is expected to persist until the end of 2020, Lambros Papadopoulos, chairman of KEDIPES’ board of directors has said.

According to KEDIPES’ financial data for Q1 2020, cash inflows amounted to €78 million compared to €121.2 million in the fourth quarter of 2019. Proceeds have been negatively affected by the debt repayment suspension and the suspension of foreclosures, implemented by the government in a bid to contain the economic impact of the lockdown measures to contain the coronavirus pandemic.

“Despite a partial recovery in June the pandemic’s negative impact and of the lockdown measures will remain significant for the remainder of the year,” Papadopoulos said during a press conference.

He also announced that KEDIPES decided to extent suspension of foreclosures and real estate repossession until August 31, taking into account the prevailing adverse conditions.

Papadopoulos said that following the debt repayment suspension decree that will be in force until December 2020, KEDIPES has approved payment holidays for loans amounting to €733 million but he assured that KEDIPES remains committed to maximising the repayment aid provided by the state in 2018.

KEDIPES began operations in September 2018 as the residual entity of the state-owned Cyprus Cooperative Bank (CCB) whose performing operations were sold to Hellenic Bank in June 2018. The state aid provided by the government amounted to €3.6 billion, assuming non-performing loans and real estate amounting to €8.2 billion in nominal value.

Furthermore, Papadopoulos said that KEDIPES is exploring a possible sale of performing loans and restructured but performing loans, adding that the company has assigned a local audit firm to act as a consultant to prepare a possible transaction.

According to Lambros Papalambrianou, KEDIPES’ Chief Financial Officer cumulative cash inflow since KEDIPES began operations in September 2018 reached €587.5 million with proceeds from the management of loans and real estate reaching €557.5 million.

Operating expenditure and management expenditure in the Q1 2020 amounted to €27.5 million down by 18% compared with the previous quarter, he said, adding that cash outflows for payment of obligations declined to €3 million compared with €42.2 million in the previous quarter, as KEDIPES in Q4 2019 paid its last tranche for the voluntary retirement scheme (VRS).

Loans amounted to €6,906 million in nominal value in Q1 2020 from €6,956 in Q4 2019 marking a reduction of 0.7% due to repayment and write offs.

On March 31 total loans under management amounted to €6,906 billion of which €534 in performing loans and €672 million.


Top Stories

Ten new corona virus cases detected out of 2,619 tests

According to the Epidemiological Surveillance Unit of the Ministry of Health 10 new cases of the SARS-CoV-II virus were detected out of a total...

Fine of €6,500 in a bar in Paphos for violating decrees

The Paphos District Court imposed a fine of €6,500 on Monday, on a property owner for violating the decree of the Law on Disinfection. Specifically,...

Toxic chemicals removed from site of accident in Nikou Pattichi St.

Fire Service members on Monday morning rushed to the busy Nicos and Despinas Pattichi Avenue in central Limassol where a barrel in a van...

Cyprus and Russia agree to amend Double Tax Treaty

Cyprus and Russia agreed on Monday to amend the Cyprus-Russia Double Tax Treaty, as Minister of Finance Constantinos Petrides wrote in a post on...

Greek Foreign Ministry calls on Turkey to stop its illegal actions

The Greek Foreign Ministry sent a clear message that Greece will defend it sovereignty and its sovereign rights and called on Turkey to immediately...


Octopus ‘Kathisto’ (or Octopus braised in Wine)

Ingredients: 1/2 cup Greek extra virgin olive oil 2 medium onions, chopped fine 1 large octopus, about 2kg (cleaned and kept whole) 3/4 cup dry red wine 1/3 cup...

Homemade lemonade

Ingredients: 1 cup lemon juice 1 cup sugar Method: Thoroughly wash the lemons with soap and warm water. Roll each lemon with the palm of your hand, pressing...

‘Striftaria’ mini cheese pies

Ingredients 1 ½ cup milk 2 tbsps. flour 4 tsps. of butter 3 eggs, slightly beaten + 1 extra with 1 tbs. of milk for spreading 1 pack of...

Mini potato canapes baked on salt

Ingredients Serves: 12 1kg small Cypriot potatoes rock salt, as needed 250g salted butter 300ml full fat cremé frâiche 1 pot cod or salmon roe Method Prep:20min › Cook:35min › Ready in:55min Take...