Cyprus wrapped up discussions today on its 2013 budget to include cuts of 1,000 civil servant jobs but the details must still be put to prospective international lenders, officials said.

The island, a euro zone member since 2008, was forced to seek an international bailout in June to support its banks battered by exposure to debt-crippled Greece.

Talks with the IMF, the European Commission and the European Central Bank, known as the troika, have been inconclusive.

Cabinet ministers meeting today concluded a draft budget, but officials said figures could change pending discussions with the troika. It is unclear when negotiations would start, though officials have said they anticipate talks in October.

"It continues to be a tight budget, to correct the structural problems and distortions which have existed in the Cypriot economy for many years," said Stefanos Stefanou, the government spokesman.

Some EU officials have estimated Cyprus's needs at 10 billion euros, more than 50 percent of the country's 17 billion GDP.

Cyprus is suffering its worst recession for 40 years, with an annualised contraction of 2.3 percent in the second quarter of 2012. Authorities expect the recession to continue in 2013.

Leaked documents have shown the troika has demanded pay cuts in the public sector, pension reform and privatisations, unlikely to go down well five months before a general election.

Yesterday the leader of AKEL, the main backer of Cyprus's left-wing government, said the option of Cyprus leaving the euro could be considered if bailout conditions were too harsh.

The government later ruled out any question of it abandoning the euro zone or the European Union.