EU and IMF officials will focus on Cyprus' banking sector, which was hit hard under the terms of the country's 10 billion-euro ($13.6 billion) rescue agreed in March. The deal saw authorities seize large portions of uninsured savings in the two largest banks and impose capital controls. The second-largest lender was shut down.
Banks are struggling to cope with bad loans. Some 46% of all loans, or 19 billion euros ($26 billion), are considered soured. That's the equivalent of 120% of GDP. Capital controls, such as daily cash withdrawal limits of 300 euros, have been significantly eased since March, but many remain in place.