Rising electricity and fuel costs are putting increasing pressure on household finances and could leave previously reliable borrowers struggling to meet their loan repayments, the Cyprus Borrowers Protection Association (Syprodat) said on Thursday.

The association said the squeeze on household budgets was becoming harder to absorb, as higher everyday costs eat into disposable income while monthly obligations continue to rise.

“Disposable income is falling, while basic needs and monthly obligations are increasing,” Syprodat said.

For thousands of families, low-income pensioners and borrowers, it added, the pressure was becoming particularly acute, with the rising cost of living directly affecting their ability to keep up with loan instalments.

Syprodat warned that the problem could increasingly affect households that have so far kept up with their repayments, as electricity, fuel and other essential costs take up a growing share of monthly income.

“When everyday life becomes a struggle for survival and a loan instalment becomes a burden that a household can no longer carry, then we are no longer simply talking about high prices,” the association said, adding that “we are talking about real social pressure that requires an immediate and meaningful response.”

Syprodat said the state should have measures in place before households reach the point where they can no longer meet their financial commitments.

Among the options it pointed to were temporary tax relief, targeted subsidies, additional support for vulnerable households and mechanisms to assist borrowers, allowing the authorities to respond more quickly when financial pressure intensifies.

“The protection should not come after a household has reached its limit. There must be a plan before we get there,” it said.

Syprodat therefore called on the government not to wait for conditions to worsen further, but to prepare concrete support measures in advance.

It also urged the government to “activate its planning immediately, listen to society and present specific support solutions for everyone”.