Newsroom
Cyprus has recently received good news from the credit rating agency Capital Intelligence (CI), which upgraded the country’s credit ratings, according to Kathimerinni's Dorita Yiannakou. This is generally seen as a positive sign for attracting foreign investment. The ratings went up from 'BBB-' to 'BBB' for long-term credit and from 'A3' to 'A2' for short-term credit. This means that Cyprus is considered more likely to pay back its debts, which could lead to lower borrowing costs for the government.
However, many economists are questioning what this upgrade really means for everyday citizens. While the government may benefit from easier access to funds and improved financial stability, the upgrades don't seem to bring any immediate advantages to the public. In fact, citizens are currently facing higher taxes and rising costs of living.
Economist Sofronis Clerides pointed out that while the country’s public finances are improving, these changes won’t directly help individuals struggling with inflation and increased expenses. He noted that the government has reported fiscal surpluses—money left over after expenses—of about €2 billion in the last two years, but these are largely due to rising prices rather than effective government budgeting.
Another economist, Stelios Platis, echoed these sentiments, stating that the government’s surplus isn't a sign of wise spending but rather a result of inflation affecting prices. Marios Mavridis also mentioned that while the upgrade looks good on paper, the reality is that citizens are paying more in taxes without seeing any real benefits.
Overall, while Cyprus' improved credit rating might help the government secure investments and lower its borrowing costs, the real question remains: how will these upgrades benefit the average citizen? Right now, many people feel the financial strain, and the advantages of the upgrades don’t seem to be reaching them directly.
