Spain has come under pressure at a meeting of EU finance ministers in Cyprus to clarify its economic strategy and what financial assistance it may require.

Minister for Finance Minister Michael Noonan said he wanted clarity from Spain about its financial plans because it had been absent over the summer months.

The Spanish government's cost of borrowing has fallen sharply since the European Central Bank said it would buy-up its bonds,

However, some analysts believe Madrid will come under pressure once again from the markets due to the depth of its recession.

Economy Minister Luis de Guindos is keen to avoid a full bailout as strict conditions would be attached and said his government would adopt a new set of reforms to boost growth.

There is speculation, however, that Spain could make a request for financial assistance as soon as the next meeting of eurozone finance ministers on 8 October.

Earlier, Mr Noonan presented Ireland's case for a reduction in its banking debt to the meeting.

President of the group Jean Claude Juncker congratulated the Government for the progress it has made in implementing the EU-IMF programme.

But he would only say that a debt-reduction deal would be discussed again in upcoming meetings.

At a news conference, Ireland was praised by both the eurozone finance ministers and the International Monetary Fund for implementing the terms of the bailout.

EU Commission Vice President Olli Rehn said the quality of the outcome of negotiations is more important than the schedule.

Mr Rehn said Ireland is going through an economic rebalancing which was necessary.