Cyprus is among those countries that have taken the most drastic measures due to rising prices, Minister of Finance Constantinos Petrides told journalists on Thursday after the Famagusta Business Forum entitled “Business in time of crisis”, which was organised by the Famagusta and Piraeus Chambers of Commerce and Industry at the Ayia Napa Marina.

Invited to comment on the increase in prices, the Minister said that the government has taken a series of measures amounting to over 160 million euro which include a VAT reduction from 19% to 10% horizontally and to 5% for the most vulnerable, an increase by 50% of the aid for the mountainous areas due to the rise of oil prices and additional support to farmers.

He stressed that Cyprus is one of the two countries that maintain the institution of COLA (Cost of Living Allowance) which compensates for inflation by about 50%.

Taking all the above into consideration, "we are among the countries that have taken the most drastic measures," the Minister said, but expressed concern about the possibility of prices continuing to be high.

He said that we are entering a new economic era and noted that it is very important for the state to remain resilient due to the uncertainty that exists.

Asked if Cyprus will ask for EU aid, he said  "there is no aid from the EU."

Pointing out that this crisis is very different from the pandemic crisis, he said that the government will be very cautious as regards financial aid, adding that those who are mostly affected by the inflation are the vulnerable groups.

He also said that there are hundreds of millions of euros in the state budget that help businesses, especially in terms of their independence from fossil fuels, through schemes for energy upgrade, photovoltaics etc and urged businesses to take advantage of those schemes.

Referring to the business forum, he described it as very important, saying that it also demonstrates the strengthening of ties between not only the two chambers but also the two countries.

Two countries, he said, which in recent years and in times of crisis have demonstrated resilience.