(Commonwealth_Europe) The financial situation in Cyprus has become a growing concern for many citizens, with an increasing number of people facing severe economic difficulties. According to the Cyprus Borrowers Association (Syprodat), the financial insecurity felt by the majority of Cypriots is reaching critical levels, calling for urgent attention and action from authorities.
The association has expressed serious concern about the financial pressures that are mounting on everyday citizens, emphasizing that a large portion of the population is struggling to meet basic needs. In a recent statement, Syprodat revealed that approximately 70% of people are now forced to count every euro just to cover essential living expenses, underlining the dire state of the country’s economic conditions.
Rising prices for essential goods such as food, housing, energy, and fuel have intensified the financial burden on households. These price hikes are not only making it harder for people to afford everyday necessities, but they are also contributing to what the association described as an increasingly “suffocating economic environment.” The combination of high living costs and stagnant wages is causing financial distress, with many Cypriots unable to make ends meet without significant sacrifices.
As the financial pressure on individuals and families grows, the sense of uncertainty about the future is also intensifying. Syprodat highlighted the ongoing nature of the economic crisis, which shows no signs of easing, thus leaving the public feeling more vulnerable and anxious about what lies ahead. The fear of further deterioration in living conditions has created a climate of insecurity, with many citizens unsure of how they will manage their finances in the months to come.
The association has called for immediate government intervention to address these mounting concerns and alleviate the financial strain on the population. In particular, Syprodat advocates for a series of targeted measures, including the implementation of a zero VAT rate on essential goods and fuel. Such a move, the association believes, would provide critical relief to all citizens, particularly those who are struggling the most.
In addition to financial relief, Syprodat pointed out that many Cypriots are being forced to make difficult choices between paying for essential services such as rent, electricity, and fuel, and meeting their basic nutritional needs. The growing challenge of balancing these expenses is pushing both employees and pensioners into a difficult position where financial decisions are becoming a daily struggle. For many, the luxury of spending on non-essential items or recreational activities is no longer an option, as they are cutting back on everything that is not immediately necessary for survival.
The situation is also impacting small and medium-sized businesses, which are feeling the effects of reduced purchasing power among consumers. As Cypriots tighten their belts, enterprises are experiencing a decline in turnover, leading to economic stagnation and financial insecurity on both sides of the equation. The ongoing financial difficulties are thus not only harming individuals but also threatening the stability of the broader economy, as consumer spending slows down and businesses struggle to stay afloat.
At the same time, despite the growing economic challenges, Syprodat warned about the upcoming green tax reform, which will introduce new taxation measures in May. One of the most significant changes is a carbon tax on petrol and diesel, set at five cents per liter, which will gradually increase to seven cents in 2026 and ten cents in 2027. While the green tax reform aims to address environmental issues, Syprodat expressed concerns that it would exacerbate the financial strain on households already struggling with high fuel prices.
In light of these difficulties, the association’s call for immediate and effective measures is more pressing than ever. Without swift intervention from the government, many Cypriots will continue to face immense financial hardship, and the economic challenges facing the nation could become even more severe in the coming months.
