Nicosia, Cyprus. The Cyprus Borrowers Association, known as Syprodat, called for decisive intervention to ensure interest rate cuts are passed on more fairly to borrowers and urged stronger safeguards against foreclosures. The association also called for a better balance between bank profits and social responsibility.
Association statement on borrowers and interest rates
In a statement signed by its president, Costas Melas, Syprodat said recent economic data show a disconnect between economic stabilisation and easing European pressure on interest rates, and the continued severe strain on many Cypriot borrowers. It said banks benefited from the high interest rate environment of previous years, recording a sharp rise in income, while thousands of households and small businesses saw monthly loan instalments surge.
Limited relief despite shift to fixed-rate loans
Syprodat said that even though borrowers have increasingly shifted towards fixed-rate products, meaningful relief has remained limited.
Concerns over foreclosure framework
The association raised particular concern about Cyprus’ foreclosure framework, which it said continues to stand out at European level. Syprodat said borrowers still face the risk of losing their primary residence without prior judicial review, which it said deepens insecurity and fuels perceptions of social injustice.
Employment and rising financial pressure
Syprodat described what it called a growing paradox in the economy, saying near-full employment now coexists with rising financial pressure and poverty. It said this “proves that work alone is not enough when the cost of servicing loans remains unbearable”.
Call for intervention and social responsibility
The statement said substantial intervention is required to more fairly pass on interest rate cuts to borrowers and strengthen protection against foreclosures. It added that the balance between bank profits and social responsibility must be restored, concluding that financial stability should also be measured by whether citizens can maintain their homes and dignity.
What changes would you like to see to ensure interest rate cuts are passed on more fairly to borrowers?
