|
Sat, 14 Dec, 2013 12:00:29 AM FTimes- Xinhua Report, December 14
The Cypriot government has again put forth the option of selling its gold reserves to raise 400 million euros (549 million U.S. dollars) to meet demands by international lenders.
Cypriot Finance Minister Haris Georgiades was reported on Friday to have raised the issue with the Central Bank which is the nominal owner of the gold.
When asked to comment on reports that he had written to the governor of the Central Bank of Cyprus on the issue, Georgiades said raising 400 million euros is an obligation under a 10-billion euro bailout agreement with the Eurogroup and the International Monetary Fund.
"Selling gold reserves is a Eurogroup decision.... I have recently communicated in writing with the Central Bank asking them to examine alternative ways to raise the money without selling the gold, as they have the sole responsibility of deciding on the issue of gold sales," Georgiades told reporters.
Cyprus has to raise 400 million euros in the first quarter of 2014.
A senior Central Bank official briefing journalists on condition of anonymity said the Bank had no plans to sell any of its gold reserves.
"We have no intention whatsoever to sell the gold," the official said.
Cyprus owns 13.9 tons of gold reserves which are worth some 436 million euros at today's market prices.
The prospect of selling gold to help partly finance its debt was raised in March when Cyprus signed a bailout memorandum with its lenders, which also involved an unprecedented recapitalization of its biggest bank with depositors' money and the winding down of its second largest lender.
The leaders of the two government coalition parties objected on Friday to sell the eastern Mediterranean island's gold reserves as a matter of principle, though they acknowledged that the government was obliged to raise 400 million euros under the bailout agreement.
When the prospect of selling Cypriot gold reserves was announced in April gold market prices fell sharply.
More News
|
|
Finland Times
| Saturday, 03 May, 2025 |
|
Copyright © 2025 All rights reserved
|
||||
