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Most Cypriots have no emergency funds for unexpected

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Almost half of Cypriots are not able to pay for their own funeral or meet other unforeseen expenses, reveals a Eurostat survey.

According to a survey conducted by Eurostat, 48% of Cypriots were not able to meet unexpected expenses in 2019, such as having to undergo surgery, replacing a washing machine, their car, or even pay for their own funeral.

Cyprus is in third in the EU, along with Greece, when it comes to difficulties faced by its citizens to meet unexpected expenses.

On average, 32% of EU citizens fall within this financial hardship category.

Among the EU Member States, the share of people unable to face unexpected financial expenses was highest in Croatia (52%), followed by Latvia (50%), Greece and Cyprus (both 48%), Lithuania (47%) and Romania (44%).

The country with the smallest percentage of citizens unable to pay for their own funeral is Malta with 15%, followed by Luxemburg, Austria and Sweden with 20% (2018 data), the Czech Republic and the Netherlands with 22% and Denmark 23%.

The highest percentages of people unable to face unexpected financial expenses were reported among single-person households: 40% of single people were unable to face unexpected financial expenses.

Some 56% of single parents with children were also unable to cope with an unexpected expense. Higher shares were recorded amongst single females (43%) than those of single males (36%).

In contrast, the lowest shares were recorded in households with two adults: 25% were unable to face unexpected financial expenses; 28% of two-adult households with one dependent child and 26% of those with two dependent children.

Among all household types, the proportion of people unable to face unexpected financial expenses was lowest for households of two adults, of whom 24% were found to be in this category.

The importance of being able to meet unexpected expenses has been highlighted during the coronavirus crisis when people around the globe have seen their income shrink due to lockdown measures.

Before the coronavirus crisis, Eurostat reports that since its peak in 2012 (40%), the ability to handle unexpected expenses had improved markedly.