President Demetris Christofias, the Greek Cypriot leader, and Turkish Cypriot leader Mehmet Ali Talat issued a joint statement after meeting for the thirteenth time since fresh peace negotiations were launched on September 3.

"Although some progress has been made, it has been insufficient," said the statement after Monday's talks.

"But we assure you we are resolved to do all in our power to reach a settlement as soon as possible," added the statement read out by UN special envoy Alexander Downer.

The leaders said they still have a long list of chapters to consider but, nevertheless "would like 2009 to bring peace and prosperity to Cyprus, our common homeland," the statement said.

"We look forward to a productive year next year and I think there is momentum here in these negotiations," Downer told reporters.

Monday's meeting was the last before the end of the year with the next session pencilled in for January 5. There will be follow-up meetings on January 12 and 16.

Cyprus has been divided since 1974 when Turkey occupied the island's northern third in response to an Athens-engineered Greek Cypriot coup seeking union with Greece.

The breakaway Turkish Republic of Northern Cyprus was declared in 1983 but is recognised only by Ankara.

A UN reunification blueprint was approved by Turkish Cypriots but rejected overwhelmingly by Greek Cypriots in 2004 just a week before the island joined the European Union, leaving only Greek Cypriots enjoying the benefits of EU membership.

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