The Bank of Cyprus (BoC) will set up an investment company that will take over the group’s non-banking operations in a bid to rationalise its balance sheet and boost its capital adequacy.

Medical tourism could contribute towards extending the tourist season in Cyprus, bringing in money and providing jobs during these financially trying times for the island, officials heard yesterday.

Appraisal drilling in Cyprus’ Block 12 begins today, the outcome of which will a have significant influence on the development of the hydrocarbons industry in the country.

GDP fell in Cyprus by 1.3% during the first quarter of 2013, compared with the previous quarter, according to second estimates published by Eurostat, the statistical office of the European Union.

Major reforms to the definition of non-performing loans have been announced in a draft directive issued by the Central Bank of Cyprus (CBC) to banks and financial institutions domiciled in Cyprus.

International Monetary Fund (IMF) Managing Director Christine Lagarde says Cyprus will probably need more than two years to get back on its feet after the near-destruction of its banking sector during the island’s messy bailout.

A Ukranian court has frozen the ownership of the local units of two stricken Cypriot banks, making it impossible for them to sell off in the short term more than €240 million of assets held in Ukraine.

Cyprus expects to begin exporting natural gas around 2020 if all goes according to schedule, says trade and energy minister.

The government is set to announce a second package of economic stimulus measures.

US energy firm Noble Energy is due to begin appraisal drilling at a second site in offshore Block 12 this week once the drilling platform has been prepped.