The European Commission is considering extending state-owned Cyprus asset management company Kedipes’ business plan until 2030, as outlined in the EU’s 17th Post-Programme Surveillance Report.

The extension reflects recent performance trends and adjustments in the company’s non-performing loan (NPL) strategy.

According to the most recent figures, Kedipes repaid an additional €240 million in state aid during the first nine months of 2024, bringing the total repayment to €1.4 billion since 2018.

Its performance was boosted by cash inflows from the sale of the Ledra Project to Bank of Cyprus, completed last December.

Following these developments and lessons from the Ledra transaction, the company adjusted its business plan.

“This updated strategy for resolving the NPL portfolio will lead to more gradual deleveraging and will therefore require the business plan to be extended to 2030,” the report said.

It also mentioned that “this, however, does not deviate from the key objective of full repayment of the €3 547 million of state aid”.

The updated strategy shifts focus toward organic analysis, a method where Kedipes has historically excelled, while reducing reliance on portfolio sales.

Recently, Kedipes reported €111 million in cash inflows for the second quarter of 2024 and €256 million over the first half of the year, noting that these figures remain at high and satisfactory levels, consistent with 2023.