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

- Ground handlers at Larnaca airport told to improve their performance after passengers were boarded onto the wrong aircraft.

- Energy analyst says Cyprus would benefit from import of compressed natural gas to the island rather than liquid natural gas.

PHILELEFTHEROS

- Deep chasm remains between the two sides on key issues over Cypriot reunification, though there has been some convergence, says president.

- Inflation surges. In the past year there has been an increase on average of 18 percent in electricity bills, 17.7 percent on bottled gas and 15.5 percent in the price of bread.