PRESS DIGEST - Cyprus - July 3

NICOSIA, July 3 (Reuters) - Leading reports in Greek Cypriot financial and general press. Reuters has not verified these reports:

POLITIS

- Cypriot president Demetris Christofias acnowledges progress in preparatory round of negotiations with Turkish Cypriot side, leaving door ajar for the start of reunification talks.

- Communications ministry gives private handler at Larnaca airport until Monday to clean up its act after reports of chaos in processing travellers.

- Wage indexation will give eligible employees a 2.28 percent pay increase from next month.

SIMERINI

- Central Bank worried at inflation, which hit five year high of 5.5 percent in June.

- Cyprus Airways CAIR.CY pilots say concerned at flight safety because of the way luggage is loaded into aircraft.

CYPRUS MAIL