The Cyprus Borrowers Association (Syprodat) this week issued a stark warning about the mounting financial pressures faced by households, borrowers, and businesses due to high prices, rising interest rates, and insufficient government support.

“Households, borrowers, and businesses are struggling every day with high prices, high interest rates, and inadequate support from the government,” Syprodat said.

Moreover, the association pointed out that the increased cost of living has become a significant issue for everyone, with borrowers’ purchasing power being “severely diminished as their income no longer suffices to meet their needs”.

“People have cut down on many of their expenses,” the statement added.

Syprodat also called on the government to recognise the rapid rise in living costs and to take drastic measures to address the issue of high prices affecting society.

The association referenced recent Eurostat data indicating that Cyprus’ inflation rate had surpassed the Eurozone average in June, describing this as a concerning development.

“The most worrying aspect of the recent Eurostat data for June is that inflation in Cyprus has climbed above the Eurozone average,” Syprodat stated.

The association concluded by saying that “we must highlight that there has been a reversal for the worse, with an increase in high prices recorded each month instead of a continuation of the deflationary trends”.