In 2008 paying a monthly rent of 800 euro rent was the equivalent of 571 pounds sterling. Now it’s 747 pounds sterling
Savings before the economic downturn were giving a return of five to six per cent, now they are around 0.5 or one per cent.
It’s now approximately 36 pounds sterling more expensive for a basic trolley of goods in a Paphos supermarket than at an Asda store in the UK.
Last year the euro was valued at 69p currently it is worth 90p.
Pensioners are estimated to be 35 per cent worse off than 12 months ago as their pensions plummet.
Food prices however continue to rise. Official figures state they are up by 9.86 per cent on 2008. Restaurants have shown a 7.08 per cent rise in the same period.
WHETHER to stay in Cyprus and try and ride out the economic downturn or return to Britain has been the burning question for many thousands of expats in recent months.
It is this very question that an important public debate taking place in Limassol and Paphos next month will address.
Sam Orgill, director of ProAct Partnership based in Paphos, will be putting the case for leaving Cyprus in the debate which is entitled simply: ‘To stay or to go back to the UK’. In arguing for leaving he will be personally playing Devil’s advocate as he has not intention of leaving himself.
“I do see the problems from both sides and many people are indeed badly affected by the financial downturn,” he said. “But there is also the need for Cypriots to desist from the mentality which has them still wedded to the Cyprus pound. They have to get real about the euro, but they are pricing themselves right out of what is a very limited market.”
Retired pensioners have been particularly hard hit with the UK state pension now cut by 35 per cent since the introduction of the euro. Those expected to supplement their life style via a healthy return from savings and investments have also seen these drop to unprecedented levels.
So, if you are 60 plus, retired and dependent on this type of income generated in the UK, you are in what can only be described as a financial black hole.
Many will have already had to dip into savings and that will have cost them dearly with most having been forced to make serious cut backs on everything from food to travel, from entertaining to home improvements.
James Hopeman from Peyia is typical. “I have lived off my investments and for the last five years have enjoyed a good life here,” he said.
But last week he had to drain his swimming pool because he and his wife can no longer afford a pool man to help maintain it. They are also watching their petrol costs and don’t go out as much as they did. Restaurants are out of the question.
“We stay home now, prisoners of the economy, and victims of the strong euro. I will try and ride it out as going back to the UK isn’t a viable or an attractive option,” he said.
“I could have just about managed to survive,” said expat Graham Brownlow, “if I hadn’t been diagnosed with a chronic medical condition which now has me having to pay something in the region of 60-80 euros a month just for essential medication.”
In the UK, prescription charges would be free for him. “So that’s having to make me think about long term. Can I really afford to stay here with my medication being so expensive?”
“I do believe the Cypriots have their heads firmly in the sand when it comes to understanding the true economic plight being suffered by this important sector of the economy,” complained Iris Georgiou, who is married to a Cypriot. “My husband knows what’s going on, but his friends don’t. Last week one of his colleagues said he was putting up the rents of all his English tenants. They will not pay the increase, then he will be left with empty apartments.
“It’s this shortsightedness and greed that annoys me and it’s everywhere: in the shops, restaurants, everywhere. Cypriots just don’t see the problem, but they are going to get quite a shock when the British leave.”
To Stay or to Go Back to the UK: the Great Debate will take place in Limassol at 7pm on Wednesday April 22 at the Royal British Legion Club 23 Amblakia Potomas Germasogia. Admission 5 euros (Raffle and bar with proceeds going to charity)
To book tel 25-583872/ 96-502423
The Paphos debate takes place at 7pm on Thursday April 23 at the UKCA Club, Coral Bay Road. Entrance: 5 euros with raffle and a bar. Tel: 96-502423 to ensure a seat.
Sam Orgill of ProAct partnership will plead the case ‘for going back’ Ross Pay of the Financial Advisors Association will support the motion ‘to stay ‘. In the chair adding balance and directing questions from the floor will be Chris Hopkins.
