Cyprus has been given an extra year to achieve a targeted budget surplus of 4% as part of bailout negotiations with international lenders.

The country now has until 2017 to generate the budget surplus target through spending cuts and tax hikes - versus a previously negotiated target by 2016, The Wall Street Journal informs.

For this year, Cyprus is forecast to post a primary deficit -- a gap in the government's finances before debt payments -- equal to 2.4% of gross domestic product.

Cyprus's government is seeking more time to reach targets required in return for EUR 10 B in international funds after agreeing to impose losses on uninsured depositors at the country's two biggest banks, Bank of Cyprus Pcl and Cyprus Popular Bank Pcl (CPB).