'Good progress' made toward Cyprus bailout: lenders

(BRUSSELS) - International lenders said on Thursday that good progress has been made on reaching a bailout deal for struggling eurozone member Cyprus and that discussions are continuing.

In a joint statement, the European Commission, European Central Bank and International Monetary Fund appeared to contradict claims by the Cypriot state news agency late on Thursday that a deal had been reached.

It said there had been "productive discussions with the Cypriot authorities on the policy building blocks of a macroeconomic adjustment programme."

The two sides had "made good progress towards agreement on key policies to strengthen public finances, restore the health of the financial system and strengthen competitiveness."

"Discussions are expected to continue from respective headquarters with a view to making further progress toward a potential programme," it said.

"Preliminary results of a bank due-diligence exercise, expected in the next few weeks, will inform discussions ... on financing solutions consistent with debt sustainability."