Housing Finance Organization plans sale of non-performing loans worth 135 million euros

The Cyprus Housing Finance Organization (HFO) is preparing to sell a portfolio of non-performing loans (NPLs) totaling approximately 135 million euros. During a session of the Parliamentary Committee on Finance, Director General Christoforos Kaplanis announced that the portfolio includes 50 million euros in loans secured by properties valued over 250,000 euros and 85 million euros in loans with over eight years of arrears, representing 96 unpaid installments. This follows a previous, smaller effort involving a 57 million euro portfolio. A tender process to appoint a consultancy firm for the sale is scheduled to launch in April or May. The due diligence process is expected to take approximately one year, with final completion of the sale projected for late 2027 or early 2028. Currently, the organization's total non-performing loans have decreased to 254 million euros as of February, down from 270 million euros last year. Kaplanis noted that the organization aims to free up capital, as every 100,000 euros tied up in NPLs prevents the issuance of 4.5 new loans of the same amount.