Makis Keravnos

Cyprus' finance minister, Makis Keravnos, said that the ministry is considering reducing the value-added tax (VAT) for basic necessities to tackle high prices.

Cyprus' Finance Minister, Makis Keravnos, has written letters to the director general of the Cyprus Banks Association and the director general of the Association of Credit Acquisition Companies and Credit Facility Managers, requesting measures to control rising lending rates for serviceable loans up to 350,000 euros.

Cyprus Finance Minister Makis Keravnos has urged banks to restructure loans, maintain low lending rates and bank charges, and increase deposit rates in light of continued basic rate hikes by central banks. He warned that, otherwise, the government "would think differently of their intentions."

Cyprus is currently facing a serious issue with its 5% value-added tax rate for first-time homeowners, as the European Commission has issued a final warning to Nicosia to pass a bill that regulates the issue, which has been ongoing since 2020.

Cyprus' Finance Ministry is considering possible actions to tackle nonperforming loans and is examining a set of measures aiming to address the issue, Finance Minister Makis Keravnos said in a statement on Friday, calling on banks and servicers to refrain from foreclosures on primary residences held by vulnerable borrowers.