Athens, Greece. The European Central Bank has said Cyprus continues to face significant data reporting weaknesses in its latest biennial statistical quality review of euro area member states. The report assessed the completeness, consistency and methodology of balance of payments and international investment position data through the second quarter of 2025.
Quality concerns
The ECB said that while Cyprus has made some improvements, it repeatedly fell short of euro area transparency standards, particularly in the quality and consistency of its monthly data. The central bank said the weaknesses have a direct negative impact on the overall quality of euro area aggregates, especially at the monthly level.
Inconsistencies in reporting
The report said national data often show inconsistencies with quarterly figures or unreliable distributions of transactions across reporting periods. It specifically criticised Cyprus for routinely allocating all foreign direct investment financial transactions and related income to the final month of each quarter, which it said distorts the statistical picture.
Delays and structural gaps
The ECB also pointed to delays in data submission, saying the Central Bank of Cyprus transmitted second quarter 2024 figures five working days late, although their overall quality was deemed acceptable. It raised further concerns over structural gaps in reporting, including the absence of any recorded transactions or positions in financial derivatives for the government sector.
Regional impact
The report said Cyprus underestimates income received by shareholders from euro area investment funds, contributing to broader distortions at regional level. It added that intercompany debt securities account for more than 1 per cent of total internal lending in Cyprus, placing it among a small group of countries with similar characteristics.