Rising energy costs could put loan repayments at risk, Syprodat warns
The Cyprus Borrowers Protection Association says higher electricity and fuel costs are squeezing household budgets and could affect borrowers who have kept up with repayments.
Nicosia, Cyprus. Rising electricity and fuel costs are putting increasing pressure on households and could leave previously reliable borrowers struggling to meet loan repayments, the Cyprus Borrowers Protection Association (Syprodat) said on Thursday.
Pressure on household budgets
Syprodat said higher everyday costs were reducing disposable income while basic needs and monthly obligations continued to rise. The pressure was particularly acute for thousands of families, low-income pensioners and borrowers, it said.
The association warned that electricity, fuel and other essential costs could take up enough of monthly income to affect households that have so far kept up with their loan instalments. It described the situation as social pressure requiring an immediate response.
Call for early support
Syprodat urged the government to prepare measures before households become unable to meet their financial commitments. It proposed temporary tax relief, targeted subsidies, additional support for vulnerable households and mechanisms to assist borrowers, so authorities could respond quickly as financial pressure intensifies.
“The protection should not come after a household has reached its limit. There must be a plan before we get there,” the association said.
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