Cyprus gov't ponders gold sale

Cyprus finance minister Haris Georgiades said on Wednesday he anticipated the government to sell part of its 13.9 tonnes in gold reserves "during the next months", but the final decision rested with the central bank.

Cyprus has to sell most of its gold to raise about 400 mln euros to finance its part of a 10 bln euro EU/IMF bailout, according to an assessment of financing needs prepared by the European Commission.

The island nation confirmed last week that a sale of its gold reserves was among the options for its contribution towards the rescue package, but ultimate responsibility rested with the central bank.

"In the case of the gold, it's the board of the central bank. It's perfectly understandable.. They have the final say," Harris Georgiades said in an interview with Bloomberg TV.

Georgiades did not elaborate on how much gold Cyprus might sell nor at what price.

Asked if the government had the support of the central bank to go ahead with the sale, Georgiades said: "It's something that will be examined soon, I hope."

A central bank spokeswoman said last week the sale of gold reserves was not presently on the board's agenda.