Central Bank Governor calls for united effort against financial illiteracy

“Financial literacy is not a luxury. It is a fundamental right and a basic skill for the 21st century citizen,” Central Bank of Cyprus Govenor Central Bank Govenor Christodoulos Patsalides has said.

Speaking at the 1st International Conference of the Cyprus Financial Literacy and Education Committee (CyFLEC) entitled “Financial Literacy for the Youth-Preparing the Next Generation”, that took place in Nicosia on 13 March, he continued, “The success of our strategy depends on the commitment of all of us – the state, institutions, universities, businesses and society.”

He went on to invite all those attending to become participants in the effort, underlining, “Knowledge is power, and through the right education, we can build a more economically resilient future for Cyprus and the generations to come.”

As Patsalides also noted, the need to strengthen financial literacy in Cyprus is urgent, as confirmed by the findings of the recent Pancyprian Financial Literacy Survey, carried out in collaboration with the Organisation for Economic Co-operation and Development (OECD) and published on 3 March.

“According to the Survey, the average financial literacy rate in Cyprus is only 56%, in a sample of people aged 15-79, while only 17% of the participants are considered to meet the basic level of proficiency. Even more worrying is that 39% stated that at least once in the last 12 months they could not cover their expenses with their income, the CBC Governor noted.

His address in full, translated from the original Greek, can be seen below:

“It is with great honor and pleasure that I welcome you to today's Conference, which is being held in the context of promoting financial literacy in Cyprus. In the two immediately preceding years, the CBC organised corresponding Conferences. Today, I have the honor to welcome you not only in my capacity as Governor of the Central Bank of Cyprus, but also as President of the Cyprus Financial Literacy and Education Committee (CyFLEC). Yes, after careful study and planning, as well as a lot of technocratic work, a state institution responsible for the implementation of the National Strategy for the Promotion of Financial Literacy and Education was activated in Cyprus on 17 June, 2024. This conference, which is taking place within the framework of Global Money Week 2025, marks another important step for our country in promoting financial literacy, with an emphasis on young people.

The need to strengthen financial literacy in Cyprus is urgent, as confirmed by the findings of the recent Pancyprian Financial Literacy Survey, carried out in collaboration with the Organisation for Economic Co-operation and Development (OECD) and published today (13 March).

According to the Survey, the average financial literacy rate in Cyprus is only 56%, in a sample of people aged 15-79, while only 17% of the participants are considered to meet the basic level of proficiency. Even more worrying is that 39% stated that at least once in the last 12 months they could not cover their expenses with their income. More details of the survey were presented at a workshop with the participation of journalists, which took place earlier today.

The results of the research help the formation of systematic and targeted actions for all citizens, including young people, who are the future of our country's economic prospects. Financial literacy is not only about knowing banking, financial or economic terms. It also concerns mindsets and behaviors. It cultivates the ability of each citizen to make rational financial decisions, plan their future responsibly, avoid financial risks and ensure their financial well-being. This, in turn, contributes to the creation of a more stable and resilient economy, in general.

As I mentioned, the operation of CyFLEC began in June 2024, with the participation of the Central Bank of Cyprus, the Ministry of Finance, the Ministry of Education, Sports and Youth, the Cyprus Securities and Exchange Commission (CySEC), the Insurance Companies Control Service and the Commissioner of Institutions for Occupational Retirement Benefits Funds. Four specialised Thematic Working Groups have already been created, with specific objectives, selected on the basis of best international practices:

1. The evaluation and updating of the National Strategy,
2. The promotion of financial literacy in public and private education,
3. Lifelong learning, and
4. Strengthening digital financial literacy.

In order to promote financial literacy in Cyprus, specific actions have already been implemented and are underway. I would like to refer to the promotion of financial education in schools and congratulate the Ministry of Education, Sports and Youth for the important first step achieved with the introduction of an interventional financial education programme for students in the third grade of gymnasium from the current academic year. This initiative, which will be extended to the remaining grades of high school from the next academic year, constitutes substantial progress in strengthening financial education from a young age and is in line with the objectives of the National Strategy.

At the same time, work is underway to create a national website for financial literacy. The project has been undertaken by the OECD with funding secured from the European Commission. This website will soon function as a central point of information and education, providing citizens with objective and user-friendly information. The development of the website is at an advanced stage, while executives of the Central Bank of Cyprus are also actively contributing to the process.

The implementation of a comprehensive training programme has also been launched, aiming to strengthen the financial literacy of adults through targeted seminars and workshops.

Finally, in the context of the overall implementation of the national strategy, specialised workshops have been held today before the start of the conference and will be held tomorrow (14 March). These workshops aim to provide practical knowledge and skills on financial literacy issues, offering the participating groups the opportunity to interact with experts in the field and gain valuable knowledge and experience.

I would like to express my warm thanks to His Excellency the President of the Republic, Mr. Nikos Christodoulides, who accepted our invitation and honored our conference with his presence and participation as the keynote speaker.

I would also like to thank our distinguished scientific collaborators who participate in the panel discussions and share with us their valuable knowledge and experience. During the discussions we will hear positions on both international best practices and the needs of Cyprus in the implementation of financial literacy policies. Finally, I would like to thank all the colleagues who worked on the organisation of this Conference.

Ladies and gentlemen, financial literacy is not a luxury. It is a fundamental right and a basic skill for the 21st century citizen. The success of our strategy depends on the commitment of all of us – the state, institutions, universities, businesses and society.

I invite you all to become participants in this effort. Knowledge is power, and through the right education, we can build a more economically resilient future for Cyprus and the generations to come.

Thank you.”