As of December 4, the Cypriot government, in collaboration with the Cyprus Asset Management Company (KEDIPES), will start accepting applications for a rent-to-own scheme.

This initiative aims to fully settle loans secured against the main residences of eligible households, offering a lifeline to those facing financial challenges.

The application window spans nine months, providing ample time for interested parties and those struggling to repay debts to participate. The state will allocate approximately 200 million euros over the next two years to support the program, managed by KEDIPES, which targets around 2,500 households. KEDIPES acquires the main residence, paying the participant (bank or credit acquisition company) about 65% of the market value. The participant writes off the remaining credit facility not covered by other collateral.

While the goal is to involve all potentially eligible households, historical data suggest a realistic target of one in three. Notably, the project has received approval from the European Commission’s Directorate General for Competition (DGComp).