Eurozone finance ministers will be examining progress on the bailout for Cyprus in the regular monthly meeting of the so-called Eurogroup to be held on Monday in Brussels.

The recently held elections that saw Nicos Anastasiades come away with the presidential victory paved the way for negotiations on the €17bn rescue plan.

Finance Ministers aren't expected to make any definite decisions as they await a report from the Troika (representatives from the European Commission, International Monetary Fund and European Central Bank).

In comments made to Der Spiegel, the European Commissioner for Economic and Monetary Affairs Olli Rehn said that assistance is crucial because a disorderly default would result in Cyprus's exit from the Eurozone.

"I'm certain that we'll find a solution that addresses the concerns of all euro countries," Rehn told the German paper.

However, German Finance Minister Wolfgang Schäuble also said over the weekend that the Eurogroup would not rush ahead with a decision on the bailout. In an interview with Tagesspiegel, Schäuble promised that the Eurogroup "will decide without rushing. Cyprus' problem is not easy to solve".

Part of the bailout request includes the need for up to €10bn to recapitalise Cypriot banks. Discussions continue among Eurozone finance ministers on the possibility that the ESM (the region's bailout fund) would directly fund bank rescues in order to take the pressure off of sovereign bonds.

Bloomberg quoted ESM Chief Klaus Regling as having indicated that "deep reservations in some European states about using the Eurozone's bailout fund for bank recapitalization could ultimately mean the plan is abandoned".

Meanwhile, Finance Ministers may also discuss easing repayment terms on the bailouts given to Ireland and Portugal. Eurogroup president Jeroen Dijsselbloem said last week that they were examining "the current programme and current loans to give more time". He explained that this means an extension of repayment in order to make "a transition to standing on their own legs a bit more gradual and less risky".

JM

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