Image copyright AFP Image caption UN chief Ban Ki-moon (C) is overseeing talks between the Turkish Cypriot (L) and Greek Cypriot leaders

The leaders of Cyprus are holding UN-mediated talks in Switzerland aimed at reuniting their divided island.

UN Secretary-General Ban Ki-moon is at the Mont Pelerin resort for the talks. He hopes to broker a deal before he steps down at the end of the year.

A previous UN peace plan for Cyprus was rejected by Greek Cypriots in 2004.

Cyprus President Nicos Anastasiades will discuss tough security and territorial issues with Turkish Cypriot leader Mustafa Akinci over five days.

Reports say this round of talks - one of many over the past 42 years of frozen conflict - will focus on possible land transfers, to address the claims of Cypriots who fled their homes in 1974.

As he opened the talks on Monday, Ban Ki-moon said the two leaders had reached a critical moment, adding that "the prospect of a solution in Cyprus is within their reach".

Media playback is unsupported on your device Media caption A UN-patrolled buffer zone separates Greek- and Turkish-Cypriots

Cyprus has been split since Turkish troops invaded in 1974, following an Athens-inspired coup by Greek Cypriots seeking union with Greece.

Since then the island has been cut in two, with the northern third controlled by Turkish Cypriots and the southern two-thirds by Greek Cypriots.

UN troops patrol the Green Line - a buffer zone cutting across the island, where damaged buildings are a reminder of the 1974 inter-communal fighting.

Cyprus aims to heal its great divide

Cyprus country profile

Issues to be resolved:

Governance: Broad agreement that the new state should be based on a federal model; but how loose should that federation be?

Security: For Greek Cypriots, the continuing presence of 35,000 Turkish troops on the island is an outrage, a constant reminder their country is occupied. Many Turkish Cypriots consider a Turkish military presence as vital, at least until they feel secure in a federal Cyprus

Territory: How much land should be administered by each community?

Property and refugees: A hugely emotional issue. About 200,000 Cypriots had to leave their homes as a result of the conflict. Arrangements for their return, or for appropriate compensation, would be complex and protracted

Cyprus joined the EU in 2004, but EU law does not extend to the Turkish-controlled north. The self-styled Turkish Republic of Northern Cyprus is recognised only by Turkey.

Cyprus adopted the euro as its currency in 2008, yet the north uses the Turkish lira.

EU diplomats are involved in the reunification talks. A deal would be a great relief for the EU after so many years of Cyprus stalemate, and at a time of inter-ethnic conflict in the nearby Middle East.

A deal would remove a major obstacle in Turkey's bid to join the EU, though many other serious obstacles remain.</s>NICOSIA, Cyprus (AP) — The United Nations chief is urging the rival leaders of ethnically divided Cyprus to seize the opportunity for a reunification deal that he says is within their reach.

U.N. Secretary-General Ban Ki-moon says the two leaders are at a “critical juncture” in talks now taking place in Mont Pelerin, Switzerland, and that they must make the most of the moment. Ban on Monday offered his full support to Greek Cypriot President Nicos Anastasiades and Turkish Cypriot leader Mustafa Akinci and called on Greece, Britain and Turkey to give their backing.

Anastasiades and Akinci will concentrate over five days of talks on how much territory each side will administer under an envisioned federation.

Cyprus was split in 1974 when Turkey invaded after a coup aiming at union with Greece.</s>Greek and Turkish Cypriot leaders are engaged in make-or-break UN-brokered talks to reunite the island.

The five days of talks between Nicos Anastasiades and his Turkish counterpart Mustafa Akinci were opened on Monday at Mount Pelerin resort in Switzerland by UN secretary general Ban Ki-moon.

Mr Ban commended the leaders for “significant progress” made during scores of meetings on the island over the past 18 months, but noted that sensitive and difficult issues remain. The talks are “at a critical juncture”, he said.

The island of Cyrus was divided after Turkey occupied the north in 1974 following a Greek junta coup against the government.

The talks, monitored by UN envoy Espen Barth Eide, are focusing on the prickly issue of territory. The Turkish Cypriot breakaway entity recognised only by Ankara comprises 36 per cent of the island and has a population of 220,000. Some 800,000 Greek Cypriots live to the south in the internationally recognised republic, which is a member of the European Union.

Greek Cypriots seek the return to their administration of Varosha, the modern suburb of the Turkish-held medieval city of Famagusta, the UN-controlled buffer zone between the communities and the Morphou area, with the aim of resettling 100,000 Greek Cypriot refugees.

Ankara, the ultimate decider for the Turkish Cypriots, has 30,000-35,000 troops in northern Cyprus and rejects the surrender of Morphou. Athens gives only verbal support to the Greek Cypriots.

Greek Cypriots insist that Turkish troops must withdraw under a deal. Mr Anastasiades argues they “may offer security for one community but . . . create insecurity for the other”. Mr Akinci contends that Turkey’s deployment depends on the shape of the agreement and says Turkish troops could leave once Turkish Cypriots feel secure.

EU foreign policy chief Federica Mogherini argues the EU provides the necessary guarantees for both communities, while the Greek Cypriots propose a strengthened UN force operating under the UN Security Council to guarantee the security of both communities.

Under pressure from Turkey, Mr Akinci has set an end-of-year deadline for a deal. He warned that these talks will be the last attempt “by this generation” and says “something else” would be the goal of future efforts. He also said that Turkish president Recep Tayyip Erdogan could annex the north if there is no agreement by the deadline.

A deal will be very difficult to achieve unless there is sufficient progress on territory and other issues in Switzerland to merit the convening of a conference to decide on security, the final phase of the effort. That would be attended by the Cypriot leaders and representatives of Britain, Greece and Turkey – the three parties designated as guarantors of the republic at independence in 1960.

UN envoy Barth Eide said current talks “will not be the end of the road”, while Cyprus government spokesman Nikos Christodoulides insists the talks “will definitely go on”.

A UN plan submitted in separate referendums in 2004 was accepted by Turkish Cypriots but rejected overwhelmingly by Greek Cypriots.
The leaders of northern and southern Cyprus meet in Switzerland to restart talks about reuniting the island.