The twelfth decree on capital controls was released yesterday with two new relaxations.

Public finances recorded a surplus of €44.2m during the first quarter of 2013 due to a reduction of government expenditure by 17.2 per cent.

The University of Cyprus’ medical school will start as scheduled in September despite a bill which was submitted to parliament to postpone the opening.

Cyprus Central Bank (CBC) announced on Thursday the preliminary consolidated balance sheet of Bank of Cyprus which under a €10 billion bailout agreement with the ESM/IMF has absorbed the good part of Cyprus Popular Bank which will be wound down.

The government yesterday decided to subsidise rent increases for businesses operating in government industrial estates while decreasing pension allowances for ex-community leaders.

Building permits in Cyprus for the first two months of 2013 declined by 18.4%, marking a continued contraction in the construction sector.

The government plans to get 8,000 unemployed people back in work, thanks to a 30.8 mln euro programme that is primarily aimed at the tourist sector.

Cyprus Ministry of Finance issued Friday a second decree, exempting four credit institutions operating in Cyprus from the capital restrictions imposed on Cypriot banks.

President Nicos Anastasiades said on Monday that very soon conditions will permit the lifting of all restrictions imposed on financial transactions.

Andrei Kostin, chairman and CEO of the Russian state-controlled VTB bank, reportedly told President Nicos Anastasiades on Monday that the Group will maintain its subsidiary in Cyprus, the Russian Commercial Bank.