The majority of Cypriots are experiencing increasing financial insecurity, a situation that demands serious attention, according to the Cyprus Borrowers Association (Syprodat).

In a statement released this week, the association stressed that “it is of vital importance to take decisions that will allow citizens to live with dignity“.

Syprodat highlighted that “the economic situation in Cyprus is becoming increasingly difficult for most citizens“, with “seven out of ten people forced to count every euro to cover their basic needs”.

Moreover, it noted that rising prices on essential goods, housing, energy, and fuel have “placed a heavy financial burden on households“.

The association described the result of the above conditions as a “suffocating economic environment“.

It also warned that “uncertainty about the future is growing, as the economic crisis shows no signs of easing”.

The association called for urgent government intervention to relieve financial pressure on people, advocating for “specific measures such as a zero VAT rate on essential goods and fuel that will support all citizens”.

What is more, it noted that “many employees and pensioners are facing difficult choices, such as whether to pay their rent or electricity bills, buy food, or refuel their vehicles”.

Syprodat also pointed out that both borrowers and the general public are “cutting back on recreational expenses and non-essential items in an effort to survive under these challenging conditions”.

“Small and medium-sized businesses are also suffering, as the reduced purchasing power of citizens leads to a decline in their turnover,” it added.

Despite these challenges, Syprodat said that under the planned green tax reform, new taxation measures will be introduced in May, including a carbon tax of five cents per litre on petrol and diesel.

“This tax will gradually increase to seven cents in 2026 and ten cents in 2027,” the association concluded.