Most importantly, the Pact provides the appropriate policy framework for addressing countryspecific fiscal challenges. In the case of Cyprus, the fiscal deficit has declined, but the government has yet to reach its medium-term budgetary objective. To this end, an annual improvement in the structural balance of 0.5 percentage point of GDP is necessary and required by the provisions of the Pact.
It is my pleasure to see you and your team, visit this institution today. Such visits accord the Bank an opportunity to explain to the public in general and to students in particular, the activities that take place at the institution.