Implementation of the National Strategy for the enhancement of Financial Literacy

The Commission aims at supporting the Cypriot Ministry of Finance and the Central Bank of Cyprus in the implementation of the recently adopted National Strategy, by carrying out a survey on the financial literacy level of the population, developing a website and its mobile interface with the related educational content for the population, and developing training modules to ultimately enhance financial literacy in Cyprus.

Context

In Cyprus, the low level of financial literacy is recognised as a problem of major importance, as it is related to high levels of private indebtedness and high levels of non-performing loans. Cyprus developed a National Strategy to enhance financial literacy and education, which is one of the reforms included in Cyprus’ Recovery and Resilience Plan (RRP). The National strategy was finalised and approved by the Cyprus Council of Ministers in the second quarter of 2022.

Support delivered

Funded by the European Commission through DG REFORM’s TSI, this project is realised with the support of the OECD, which has substantial experience in financial literacy.

During 24 months, the OECD analyses the financial literacy level of the Cypriot population (15-79 years of age) through a survey based on the OECD/INFE 2022 Toolkit for Measuring Financial Literacy and Financial Inclusion.

Then, a dedicated website, as well as its mobile version will be designed, including educational tools to populate the platform: a glossary on financial education, infographics, guides on specific financial literacy topics, a module on the digitalisation of finance, situations for different life stages, six tools and/or calculators, six videos.

Finally, a "Training of Trainers" module (training material and training sessions) will be provided to teach trainers who will ultimately provide financial education to adults in Cyprus.

Expected results

This project will contribute to a substantial enhancement of the financial literacy level of all demographic groups in Cyprus, which would result in an increase in the level of the population adequately managing everyday financial issues, a lower probability of over-indebtedness, prudent financial skills and saving habits, wiser retirement planning, a lower vulnerability to being exploited or deceived, a higher participation in the financial markets, an increased probability of earning higher salaries and an enhancement of financial resilience.

In the longer term, this support is expected to contribute to financial stability and prosperity at both individual and country level.