IMF confirms talks on possible loan to Cyprus

(WASHINGTON) - The International Monetary Fund confirmed Wednesday that a team is headed to Cyprus this week for talks on a possible bailout deal for the island's recession-hit economy.

"On the basis of progress made by the authorities since July, an IMF mission is scheduled to return to Cyprus this week," the global lender said.

"The purpose of the mission is to advance negotiations on the policy building blocks of a potential program."

Earlier Wednesday Cyprus government spokesman Stefanos Stefanou said that representatives of the "troika" of eurozone bailout lenders -- the IMF, the European Commission and European Central Bank -- would soon arrive for "negotiations aimed at achieving agreement on granting a loan to Cyprus."

The IMF said the talks "will be an important step toward an agreement on a program, which will also require, in cooperation with Cyprus's European partners, a solution to provide financing consistent with debt sustainability."