New Cyprus ratings highlight 'prosperous and resilient economy'
Cyprus has received new ratings on its economic strength from finance intelligence company Standard & Poor's, which has highlighted the country's "prosperous and resilient economy".
The company has said that Cyprus has a "short but impressive" record of fiscal restructuring which, coupled with the prospect of joining the economic moneteary union of Europe, bodes well for the future.
Eileen Zhang, credit analyst with Standard & Poor's, explained that the strong ratings are "constrained" by poor levels of external liquidity and a high - but declining - public debt burden.
However, she is quoted by the Financial Mirror as saying: "We expect that the Cypriot government's commitment to budgetary consolidation will continue to produce a low fiscal deficit and will further reduce its debt burden, even after the adoption of the euro."
The report concluded by saying that the government's general deficit is expected to fall to under 2% of gross domestic product for 2007 from the relatively high levels observed between 2001 and 2003.
Cyprus joined the European Union in 2004, along with nine other countries.
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