'Gold sales within months'

THE government plans to sell part of its gold reserves within the next months, a decision that needs to be approved by the country's central bank, Finance Minister Haris Georgiades said. "The exact details of it will be formulated in due course by the board of the central bank," he said.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/cypgold/Article/index_html
Published: April 18, 2013

President Nicos Anastasiades is trying to unlock ?10 billion (RM39.93 billion) of loans from the euro area and the International Monetary Fund (IMF).

An April 9 debt assessment by the European Commission said Cyprus had committed to selling about ?400 million of "excess" gold reserves, prompting gold futures to fall the most in five months.

In response to the disclosure, the Central Bank of Cyprus said it wasn't considering a sale.

Central bank chief Panicos Demetriades said last week the Cypriot government didn't have the right to sell gold without his consent.

He also signalled the administration hadn't involved him in the plan.

The Cypriot central bank manages the country's gold stock, which amounts to 13.9 tonnes, according to the World Gold Council.

Georgiades said the government fully respects the independence of the central bank and insisted on effective cooperation.

The country needs to look into how it got into this difficult situation and "obviously some decisions of the central bank will be examined" by an independent commission, he said.

The government will do whatever is needed to ensure "smooth and effective cooperation between all decision-making authorities," Georgiades said.

Anastasiades set up a commission this month to investigate the reasons that led Cyprus to the brink of a financial collapse.

Gold futures fell to the lowest since January 2011 on April 16 on increased investor concern that European governments may have to follow Cyprus in selling reserves, said Goldman Sachs Group Inc.

The price of gold advanced 0.7 per cent to US$1,377.21 at 8.01am in London yesterday, gaining for a second day.

"I'm not really sure if the series of events is exactly matching with the recent movements in the price of gold, but I suspect it was a contributing factor," Georgiades said.

At the same time, Cyprus' parliament must vote on the ?23 billion bailout deal the country has agreed upon with creditors, the attorney-general said on Tuesday.

Petros Clerides said the deal Cyprus has reached with the IMF and its partners in the 17-nation eurozone must secure parliamentary approval to become valid.

Some lawmakers have insisted that they vote on the deal since it will need parliamentary approval from six other eurozone countries.

Clerides didn't say when a vote would be held, but it should be soon given that the tiny island nation faces a cash crunch in next month that could leave it bankrupt.

Georgiades said the country would slide into insolvency if a deal isn't ratified this month.

European officials say Cyprus should receive the first bailout money early next month. Agencies