Nicosia: The Ministry of Finance has expressed approval for the conclusion of agreements between The Cyprus Asset Management Company Ltd (KEDIPES) and Eurobank Limited, as announced on Tuesday. The termination of the Asset Protection Scheme (APS) is expected to significantly reduce the cost of the agreements, which now stands much lower than the original 2018 estimates. This move also releases the Republic of Cyprus from guarantees exceeding £1 billion.
According to Cyprus News Agency, the Ministry highlighted in its statement that the 2018 agreements had included substantial guarantees by the Republic of Cyprus to the then Hellenic Bank. These guarantees were part of the Loan Guarantee Scheme, which addressed potential losses on loans totaling £2.6 billion.
KEDIPES revealed during a press conference concerning the financial results for the second half of 2025 that the agreements with Eurobank Limited were finalized on January 30, 2026. These agreements involved the termination of the APS, the repurchase of a portfolio of non-performing loans, and the settlement of obligations and guarantees from the 2018 asset transfer agreement.
According to KEDIPES, this development signifies the end of a challenging process, resulting in the definitive termination of the 2018 guarantees. The net cost of the APS has been limited to £74 million, roughly half of the original 2018 estimate.
The Ministry emphasized that despite KEDIPES' full compliance with the original agreements and the state guarantee not being activated, the 2018 agreements indirectly impacted the Cypriot taxpayer. This was due to the constraints on recovering state aid granted to the former Cooperative Cyprus Bank.
The Ministry underscored that the termination of these agreements was made possible through effective collaboration between KEDIPES and the Ministry of Finance, with the necessary approval from the European Commission. This step not only reduces the cost significantly compared to the 2018 estimates but also frees the Republic of Cyprus from guarantees exceeding £1 billion, thereby mitigating associated risks.
In a related development, Themis Portfolio Management Limited signed a loan portfolio and real estate management agreement valued at £361 million with KEDIPES and Creditum Holdings Ltd on January 30, 2026. This followed KEDIPES' acquisition of the portfolio from Eurobank Cyprus Limited through the special purpose entity, Creditum Holdings Ltd, as noted in a press release by Themis.