Cyprus may sell gold reserves

CNC report from Nicosia
Added On April 13, 2013

The Cypriot government says selling some of the country's gold reserves is among the options under consideration to finance part of the bailout.

But, the government says, the decision ultimately lies with the Central Bank.

Selling gold to help the bailout.

That's apparently what the debt-ridden Cyprus is considering.

On Thursday, the government confirmed it's an option, but added it's up to the central bank to make the decision.

Cyprus is in desperate need of aid to avoid a collapse of its financial sector. The bailout now is estimated at 23 billion euros, a jump from the previous 17.5 billion. But international lenders insist the country raises 400 million euros by itself before any help comes.

Selling part of its gold reserves props up an option. The country's total bullion reserves are now worth a bit more than 560 million euros.

The government is also seeking to cut salaries in the public sector and impose a new tax on property. Both measures have been put to Parliament for approval. Further legislation to cut public expenditure in the health sector will be also introduced in Parliament next week.

The government says it'll discuss the measures with its international lenders.