The Cyprus authorities are reported to have decided to sell some of the country’s gold reserve. All they need is to get an approval from the central bank. The details of the plan will be announced in the near future, the finance minister promises. He says this is a crucial decision.
Cyprus needs external support equal to 10 billion euros. The tranche will come from the EU and the IMF. However, in order to get the desired financial support, the local authorities need to attract some 11 billion euros inside the country. The plan includes gold sales and a one-time tax on bank deposits.
On April 9th, the European Commission announced that Cyprus had the right to sell excessive gold in its reserve. The sales are expected to help the country attract some 400 million euros. After the announcement, gold prices started declining sharply. At that time, the Bank of Cyprus denied the possibility of gold sales.
According to the World Gold Council, Cyprus ’s gold reserves are estimated at 13,9 tons.
The chart below, courtesy of , reflects the current state of affairs in the market of gold:
