KEDIPES (The Cyprus Asset Management Company Ltd) presented financial results last Tuesday showing an unexpected social trend: adult children are stepping in to pay off their elderly parents’ loans as borrowers struggle with debt in their 60s.
The asset management company revealed that the average age of borrowers whose loans it manages stands at 60 years, making it difficult for them to access new financing or generate additional income to service old debts.
According to information from the presentation and subsequent discussions with KEDIPES officials, a significant number of loan settlements are not being made by the original borrowers themselves, but by their children.
The pattern reflects cases where elderly parents, facing limited pension income and no access to new credit, cannot meet loan obligations.
Their working-age children then take on repayment responsibility to protect family property, particularly the primary residence, and spare their parents lengthy legal proceedings.
KEDIPES has responded to this difficulty by implementing settlement schemes offering substantial discounts for immediate repayment of both non-performing and restructured loans.
One scheme allows full settlement of loans secured by primary residences with market values up to €350,000, which were and remain non-performing. The settlement amount is calculated with a significant percentage discount on the property’s market value.
During 2025, loans with balances approaching €300 million have been settled through doValue, which manages this particular KEDIPES portfolio.
A second scheme, announced in July 2025, follows the same philosophy but targets restructured and performing debts, offering substantial discounts on outstanding balances.
According to KEDIPES, interest proved particularly strong and response exceeded initial estimates.
The scheme will continue into 2026 as part of the organisation’s business plan, contributing both to reducing the overall loan portfolio and helping families who, with support from younger generations, are attempting to finally close financial obligations from the past.