Finance Minister Harris Georgiades said the government was working on proving the ratings agencies wrong, a day after Fitch said it expected the recession in Cyprus to be deeper than what international lenders forecast.

An International Monetary Fund (IMF) team of experts is in Cyprus to scrutinise the island’s solvency law, reports have said.

The banking sector may have been saved from the brink, with the taxpayer footing the bill, but the trickiest part of overhauling the economy and reining the national debt still lies ahead.

Defence Minister Fotis Fotiou said that much work was being done on the issue of energy security, adding that “we are creating an energy security umbrella because energy and our natural resources arethe future of this country.”

Cyprus is not alone in its efforts to recover from the worst economic crisis in decades, Internal Markets Commissioner Michel Barnier said in Nicosia, as he reiterated the island was on the right track to stabilise the economy.

Labour Minister Zeta Emilianides says enough funds have been set aside to ensure the guaranteed minimum income, expected to enter into force in July 2014.

Russia has given the green light for additional flights to Cyprus during the winter season, following a decision to liberalise the air routes between the two countries.

Cyprus and Lebanon will begin negotiations for a unitisation agreement to regulate ownership issues if hydrocarbons are found in the area between the two countries’ EEZ.

The European Investment Bank (EIB) has approved a new financing instrument for Cyprus, paving the way for trade finance support worth up to €150m, which will be made available by the end of 2013.

Cyprus is looking into the possibility of transferring water from Lebanon, either by ship or pipeline, to lower the cost of agricultural production, says Agriculture Minister Nicos Kouyialis.