"Good political relations must be reflected in the improvement of economic ties," Zuzul said.
The Cypriot minister expressed satisfaction with the signing of today's agreement and told reporters he had proposed other agreements as well, for example on introducing a direct flight connecting Larnaca and Zagreb.
He said he was looking forward to cooperation between the two countries in Euro-Mediterranean forums which were set up by the European Union given that Croatia is a Mediterranean country.
Stressing that Cyprus had supported Croatia's aspirations regarding the EU, receiving candidate status and a date for the start of entry negotiations, Iacovou said Cyprus advocated Croatia's admission to the EU as that of an independent and free country that was evaluated on its own merits.
He offered to share Cyprus' experience from the negotiating process.
Zuzul told reporters he had asked the support of Cyprus for Croatia's seat in the UN Security Council in 2008 and 2009.
Iavocou told Zuzul that as a candidate country, Croatia needed to have the support of the entire European Union and added that Cyprus would see to it.
The Cypriot official could not avoid the question about former Yugoslav President Slobodan Milosevic and the money stolen from the Yugoslav Central Bank and the alleged role of Cypriot banks in hiding the money.
" We are cooperating with Croatia regarding that issue, but there is no material evidence that the money is in Cypriot banks," the minister said.