The Council of Ministers adopted on Tuesday seven medium-term measures to reduce the impact of energy costs on vulnerable and other population groups, as well as to promote permanent and sustainable solutions to meet the energy and housing needs of households and young families.

According to a Presidency statement, the Council of Ministers, at its meeting yesterday, chaired by the President of the Republic Nikos Christodoulides, decided to adopt medium-term measures, which, if necessary, will be updated depending on the evolving situation, on the basis of the state's fiscal capacity.

As noted, the first measure, regarding the existing subsidy of the electricity billing price for the domestic use special tariff for vulnerable consumers (Code 08) and commercial use (tariff 010), i.e. vulnerable households and selected businesses, respectively, concerns the extension of the measure to cover low-income pensioners and single-parent families. In particular, as noted, the measure benefits an additional 22,200 low-pension households and 10,700 single-parent households, who are eligible for the single-parent allowance. This subsidy will be valid until December 2025 at an estimated cost of €25 million.

The second measure decided by the Cabinet concerns an additional €15 million for the upgraded "Photovoltaics for All" scheme (i.e. without the payment of initial capital), also targeting large families living in small and medium sized households with the sole criterion the capacity of the system. This measure is expected to benefit 3,000 families.

As a third measure, it was decided to allocate an additional €30 million to the "Save-Upgrade Homes" grant scheme for the energy upgrade of existing homes, with only physical persons as beneficiaries.

The Council of Ministers also ratified a fourth measure, which was announced on 10 October 2024 by the Minister of Finance, to impose a zero VAT rate on children's diapers, baby milk, adult diapers, feminine hygiene products, fresh fruit and vegetables. The measure will come into force on 4 November 2024 and will apply until the end of 2025, at a total estimated cost of €5.1 million.

In relation to housing, the Cabinet decided that the Ministry of Finance will immediately start accepting applications for a 2% interest rate subsidy on mortgage loans taken out between 1 January 2022 and 31 December 2023 for the purchase and construction of a first home for families with an annual income of €50,000. The total budget of the scheme amounts to approximately €33 million.

Also, in another measure, the Ministry of Interior will start accepting applications from 15/11/2024 for the "Renovate - Rent" scheme for the inclusion of vacant and idle houses in the rental market. The renovation involves 1,000 housing units and making them available at affordable rent (30% of market price) to potential beneficiaries, subject to income criteria, with a total estimated cost of €25 million, while tax relief will also apply to landlords.

As a seventh measure, the Cabinet decided that the Ministry of Interior will implement a housing subsidy scheme for young couples and/or young people up to 41 years of age with a one-off grant of €20,000 to €50,000, based on income criteria. This measure, with a total cost of €15 million, will benefit 400 young people.

Commenting on measures, Finance Minister Makis Keravnos said on Wednesday that the Government monitors and evaluates developments in the economy on a continuous and permanent basis, and especially in those parts of society that are most vulnerable, and makes continuous interventions.

Responding to a question, he said that housing issues would be addressed through other plans to be announced by the competent Minister. He noted that there are €105 million in the 2025 budget for some measures to be put in place immediately that will on the one hand increase housing supply and on the other hand reduce the cost of rent.

On reducing interest rates, he said that he is in contact with both the Central Bank Governor and the Association of Cyprus Banks, whom he said he will see the day after tomorrow, adding that there had been moves to reduce interest rates and expressed confidence that they would continue.

Asked about the extension in filing tax returns, he said the deadline has been extended until the end of November due to the problem with cyberattacks.