**NICOSIA, CYPRUS** – In a striking demonstration of familial solidarity, adult children in Cyprus are increasingly stepping in to shoulder the financial burdens of their elderly parents, settling substantial outstanding loans with the state-backed asset management company, KEDIPES. This emerging trend, revealed during KEDIPES’s recent financial results presentation last Tuesday, highlights the profound impact of economic pressures on a generation of borrowers and the lengths to which their offspring are going to safeguard family assets and prevent protracted legal battles.
The Cyprus Asset Management Company Ltd (KEDIPES) has observed a significant uptick in loan settlements where the repayment is initiated not by the original borrowers, many of whom are in their sixties and struggling with diminished pension incomes and restricted access to credit, but by their adult children. This phenomenon underscores the vulnerability of older individuals facing legacy debt, often accumulated during more prosperous economic times, and their subsequent inability to manage repayments in the current climate.
To address these persistent challenges, KEDIPES has proactively implemented a series of attractive settlement schemes designed to incentivise immediate repayment. These initiatives have proven remarkably successful, exceeding the company's initial projections. One prominent scheme offers a substantial discount for the immediate settlement of loans that are secured by primary residences, provided the market value of these properties does not exceed €350,000. This measure is particularly pertinent for safeguarding the family home, a cornerstone of security for many older Cypriots.
Furthermore, a second, more recent scheme, announced in July 2025, targets restructured and currently performing debts. This programme also provides considerable percentage reductions on the outstanding balances, encouraging borrowers – or, as is increasingly the case, their children – to clear these obligations in one lump sum. The efficacy of these schemes is evidenced by the fact that loans with balances approaching €300 million have already been successfully settled throughout 2025, a considerable portion managed by doValue, a firm involved in managing a KEDIPES portfolio.
The underlying reasons for this intergenerational financial intervention are multifaceted. Many of the original borrowers, typically aged around 60, find themselves in a precarious position. Their fixed incomes from pensions are often insufficient to cover the escalating costs of living, let alone the servicing of older debts. Simultaneously, their age and financial circumstances frequently preclude them from accessing new financing options that could consolidate or alleviate their existing liabilities. Consequently, their children, often in more stable financial positions, are stepping into the breach. Their motivation extends beyond mere financial assistance; it encompasses a deep-seated desire to protect their parents from the stress and potential destitution associated with foreclosure and lengthy, complex legal proceedings.
The robust uptake of KEDIPES's settlement programmes signifies a clear market response to the financial realities faced by many households. The company's strategic approach of offering significant financial incentives for prompt resolution has not only helped to de-risk its loan portfolio but has also provided a crucial lifeline for families navigating a challenging economic landscape. As these settlement patterns continue to evolve, they paint a compelling picture of a society where familial bonds are being leveraged to overcome systemic financial obstacles, ensuring the preservation of family assets and the well-being of an aging population.