Cyprus Mail
Banking and Finance Business Cyprus

Coronavirus: Kedipes sees income drop in Q1 (Updated)

Kedipes, the state-controlled company set up to manage the co-op’s non-performing assets, saw a 35.6 per cent drop in income in the first quarter of the year because of the coronavirus pandemic, a news conference heard on Thursday.

The company, set up after the co-op bank was shuttered in 2018, said revenues reached €78m against €121.2m the previous quarter.

“Despite the partial recovery seen in June, the negative effect of the pandemic and the measures will remain significant for the rest of the year,” board chairman Lambros Papadopoulos said.

Papadopoulos announced that the company will extend a moratorium on auctions and repossession of properties until August 31 given the difficult social and financial conditions.

Kedipes lost around €58m in the first quarter because of a loan repayment holiday mandated by parliament. The decision affects €733m worth of loans.

In June 2018, the co-op agreed to sell its operations to Hellenic after its failure to reduce its stock of non-performing assets stock practically forced it out of business.

Papadopoulos said the company was looking into selling a package of loans when conditions were favourable.

According to the Q1 results, Kedipes collected €76.4m from loans and property management, which represents 1 per cent of the nominal value of the company’s portfolio of some €7.6bn at the end of Q4 2019.

Since its creation, in September 2018, Kedipes has collected around €587.5m. Out of that, €557.5m, represented cash from loans and property management. The company’s initial portfolio was worth around €8bn.

Around €157m were made in Q1 from loan restructuring and repossessions, down from €356m in the previous quarter.

Kedipes also made around €235m through debt for asset swaps and sold 1,083 properties worth €170.5m.

Of a government mortgage relief scheme, Papadopoulos said it did not yield the expected results despite efforts to promote it.

To date, 3,122 applications have been submitted, representing 3,764 accounts and €856m.

Papadopoulos said he expected the number of approved applications to be very small.

“From around €800mn we estimate that the final approvals will concern between €100m and €150m.”


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