Audit Office puts Cyprus cooperative bailout bill at about €2 billion by 2030
State support for the former cooperative banking sector is expected to cost taxpayers roughly €2 billion through 2030, the Audit Office says, with the final figure hinging on how much Kedipes recovers.
Cyprus taxpayers face a bill of about €2 billion for the rescue of the former cooperative banking sector across 2014–2030, according to the Audit Office. Its report on how well state-owned Kedipes is recovering the support says the total depends on how much of the outstanding aid can be clawed back.
The estimate combines the €1.67bn original recapitalisation minus €175m already recovered, a further €340m expected to stay unpaid out of €3.54bn in state support, and roughly €200m in financing costs. The €340m assumes Kedipes returns 90 per cent of the aid, with the financing charge stemming from the 1 per cent interest the state earns on funding to Sedipes.
As of March 31, 2026, Kedipes had repaid €1.76bn, the office said, including €1.68bn in cash and smaller amounts tied to the Rent in Exchange for Instalment and Estia schemes. Auditor-General Andreas Papakonstantinou said the outcome hinges mainly on the 90 per cent target, warning that unmanaged loans may prove the hardest and that shrinking interest income will weaken repayment capacity.
What it means for residents
The rescue is public money, so every euro Kedipes fails to recover is a euro the state cannot spend elsewhere — on services, infrastructure or debt reduction. The office's findings suggest the bill is not yet fixed, which puts pressure on future budgets.
- Budget pressure: a higher final cost leaves less room for public spending in the years ahead.
- Watch the portfolio: the remaining €2.4bn nominal portfolio and any extension of its management will shape the final figure.
- Contract scrutiny: the Altamira agreement and asset sales deserve continued public oversight.
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