"If there is no reserve from the government, then we will see the gratuitous shot at vulnerable households."
The negative effects of inflationary pressures and the continuous increases in interest rates that weaken households and businesses remain unpredictable in the Cypriot economy.
The Minister of Finance, speaking at a conference on the banking system, said that successive increases cause multifaceted effects on the economy.
According to the Minister of Finance, Makis Keravnos, "one of the main challenges facing the banking sector is the series of repeated interest rate hikes by the European Central Bank, which follows perhaps the most decisive cycle of restrictive monetary policy in the last 40 years".
At the same time, Averof Neofytou, during the trade committee, on the subject of the rise in interest rates, warned that the worst is yet to come.
“We have yet to see the worst and the worst is coming in the first half of 2025. If there is no reserve from the government, then we will see the gratuitous shot at vulnerable households. Public finances should be kept strong to support society," he said.
Political forces continue to pressure the government and banks to take measures for borrowers.
In fact, the President of the Trade Committee did not even rule out calling the President of the Republic to inform them.
The Ministry of Finance, however, told the committee that it is closely monitoring the developments and announcements may follow at the appropriate time.