Cyprus to sell €400m of gold to fund rescue

Ben Southwood
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CYPRUS has agreed to sell €400m (£261m) of gold reserves to help finance its rescue, according to the draft version of a European Commission assessment.

The document said Cyprus would get €10.6bn of its €23bn financing needs from winding down Laiki bank, €600m from higher corporation tax, €9bn from the Eurozone fund and €1bn from the International Monetary Fund.

Meanwhile deposits flowed into Greece in March, the country’s central bank said yesterday, despite worries that Cyprus bank levies would spook savers.

On net, Greek banks saw €1.5bn come back last month, the figures showed, as part of €19bn that has returned to the crisis-hit state since last June’s election which returned a pro-bailout conservative government.

But this stands against the €90bn that fled Greece during the height of the sovereign debt crisis.

“There are no fears on bank deposits in Greece, they are fully protected regardless of amount,” Bank of Greece governor George Provopoulos told parliament’s economic affairs committee.

This was part of a bid to talk down worries that Greek depositors would face a charge like that hitting Cypriot savers.