TALLINN — The Central Bank of Estonia released a report Tuesday projecting that Estonia will fulfill the Maastricht criteria for eurozone entry in 2011.

The national bank reported some optimistic indicators, noting that the growth of bad loans was slower than was feared in the spring. However, the bank warns that the borrowers’ capability of servicing their debt continues to be the factor posing the greatest threat to financial stability in Estonia.

Eurozone accession has been a long-term goal for Estonian government and is reflected in the 2010 national budget. The budget deficit was reduced to less than 3 percent of gross domestic product, fulfilling the Maastricht criteria to switch to the euro currency in January 2011. Estonia’s 2010 state budget keeps the deficit below 3 percent of the gross domestic product, which along with a sufficiently low long-term interest and inflation rates keeps the country on course toward euro adaption.

Central Bank of Estonia Governor Andres Lipstok said once Estonia enters the eurozone, foreign investment will increase.

“When we adopt the euro our organizations will be on the same level as the whole euro area and investor confidence will increase,” Lipstok told Baltic Reports.