By Stelios Bouras and Nektaria Stamouli

Cyprus must pass a series of austerity measures to clinch a deal from international creditors or face a payments freeze due to a 80 million euro ($102.8 billion) budget shortfall, the country's finance minister said Monday.

Finance Minister Harris Georgiadis said the eastern Mediterranean island must rush through parliament in coming weeks laws increasing taxes or cutting spending in a bid to seal the EUR10 billion loan deal from euro zone peers and the International Monetary Fund.

"We are currently at a borderline point," he told reporters after addressing a parliamentary economics committee. "We cannot hold on with this situation for much more without the lending agreement."

The country has promised spending cuts and tax increases equal to more than a tenth of its EUR17 billion a year economy through 2018 in order to meet budget targets its creditors set. Other measures include raising retirement ages for public and private-sector workers, cuts to health-care spending and raising 1.4 billion euros from privatizations over the next five years.

Last week, the IMF said it had reached a staff level, or initial, agreement with Cyprus to unlock its portion -- about EUR1 billion--of the total loan agreement for the country, with formal approval expected in early May. A final deal still needs the approval of other euro-zone members, who are footing 90% of the rescue, and are set to review its terms over the next two weeks.

Rea Georgiou, Cyprus' Accountant General, said that country's cash reserves stand at EUR85 million and that an additional EUR80 million is needed for the government to meet obligations, including paying pensions and civil servant's salaries.

After two attempts at securing a bailout deal in March that pushed Cyprus to the brink of exiting the euro, the country faces major obstacles. To secure the aid, it agreed to wind down its second-largest lender, Cyprus Popular Bank PCL, and radically restructure the largest, Bank of Cyprus PCL (BOCY.CP).

Write to Stelios Bouras at stelios.bouras@dowjones.com; Nektaria Stamouli at nektaria.stamouli@dowjones.com;