According to the latest report published by the European Union on macroeconomic and financial stability of candidate countries, Cyprus’ performance was evaluated as satisfactory.

The Cyprus government’s aim for balancing of public finances up to 2004 and for the eradication of public deficit is considered possible, resulting in the reduction of public debt to 48% of GDP.

Concerning the banking sector, the report considers this to be well developed, offering effective services to both clients and investors. Capital adequacy was above required levels, confirming the banks’ satisfactory financial strength.

The report also notes that Cyprus’ supervisory controls for the financial sector are at satisfactory levels according to EU requirements.