Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout

Tyler Durden's picture


Curious why every bank and their grandmother, and most recently Goldman today, has been lining up to push the price of gold as low as possible? Here's why:


Or about 10 tons of gold. But... the bailout was prefunded and there was no need to provide any additional cash? What happened: was the deposit outflow discovered to have been even greater than the worst case scenario and thus Cyprus needed even more cash? As for the buyers? We will venture a guess: central banks buying at the lows.

Finally: congratulations Cypriots. You are now handing over your gold for the one time, unbeatable opportunity to remain a vassal state to the Eurozone. But at least you have your .

The good news: Cyprus will have at least another 4 or so tons after selling the 10 demanded now, before the Troika kindly requests that Cypriot citizens sell a kidney or two to pay for the ongoing deposit outflow from its insolvent banks, and indirectly, the endless bailout of the Euro.

Full story from Reuters:

Cyprus has agreed to sell excess gold reserves to raise around 400 million euros and help finance its part of its bailout, an assessment of Cypriot financing needs prepared by the European Commission showed.


The draft assessment, obtained by Reuters, also said that Cyprus would raise 10.6 billion euros from the winding down of Laiki Bank and the losses imposed on junior bondholders and the deposit-for-equity swap for uninsured deposits in the Bank of Cyprus.


Nicosia would get a further 600 million euros over 3 years from raising the corporate income tax rate and the capital gains tax rate.


Out of the total Cypriot financing needs of 23 billion euros between the second quarter of 2013 and the first quarter of 2016, the euro zone bailout fund will provide 9 billion euros, the International Monetary Fund 1 billion and Cyprus itself will generate 13 billion, the assessment said.

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Wed, 04/10/2013 - 10:41 | 3431148 Cognitive Dissonance
Cognitive Dissonance's picture

Why change a (legal thieving) script that still works...........and works well.

<He who owns the Gold makes the rulez.....bitches.>

Wed, 04/10/2013 - 10:42 | 3431180 Divided States ...
Divided States of America's picture

Yup...with the recent senseless surge in EUR and the mindless tankage in Gold its all clear as to why it happened.

Seems like stealing from the poor is going mainstream all over the globe...

Wed, 04/10/2013 - 10:45 | 3431203 camaro68ss
camaro68ss's picture

Stupid slave state to the Euro. You cant fix stupid

Wed, 04/10/2013 - 10:50 | 3431226 hedgeless_horseman
hedgeless_horseman's picture



Those people trading Euros for Cypriot gold do not understand the political capital invested in Europe.  They vastly underestimate what the Euro means for the Europeans, for the Euro area.

Wed, 04/10/2013 - 10:50 | 3431243 Rip van Wrinkle
Rip van Wrinkle's picture

It means only one thing HH. Serfdom to an unelected dictatorship. Period.

Wed, 04/10/2013 - 10:50 | 3431256 Pinto Currency
Pinto Currency's picture


Cyrpus is officially toast.

Wed, 04/10/2013 - 10:52 | 3431280 flacon
flacon's picture

They are literally selling their national 'tradition'. 

Wed, 04/10/2013 - 10:58 | 3431317 Pladizow
Pladizow's picture

How do we get the gold?

Problem, Reaction, Solution!


Wed, 04/10/2013 - 11:32 | 3431553 johnQpublic
johnQpublic's picture

homer discussing the cypriots

Wed, 04/10/2013 - 11:44 | 3431643 SafelyGraze
SafelyGraze's picture

if tptb didn't drive down the price of gold and then demand gold from cyprus in exchange for fiat banking medium, what would be the alternative?

just steal it?

attack and kill and rape and destroy plunder?

this was is so much more civilized.


Wed, 04/10/2013 - 11:55 | 3431699 TPTB_r_TBTF
TPTB_r_TBTF's picture

them stealing the Gold this way...

... this way nobody fights back.


Peace Brother!  Peace on Earth.


That reminds me, is N.Korea gonna launch today or not?!

Wed, 04/10/2013 - 12:07 | 3431792 BaBaBouy
BaBaBouy's picture

Fecking Keysenian SCAM ...

Wed, 04/10/2013 - 13:10 | 3432114 Citxmech
Citxmech's picture

Thes fascists just can't fuck these poor people hard enough can they?  Of course the people seem to have lost the skills to even understand how hard they are getting fucked, let alone come up with a strategy to mitigate the fucking they're receiving.


Wed, 04/10/2013 - 13:27 | 3432196 Dark_Horse
Dark_Horse's picture

Strong hands are buying/taking delivery, weak hand are selling in forced capitulation.

It will soon be quite clear who is to be the masters and who is to be slaves.



Wed, 04/10/2013 - 13:43 | 3432253 Skateboarder
Skateboarder's picture

Wait a tick... isn't this more gold than Germany isn't getting back from the Fed?

7-year lead time for the king, whoo.

Wed, 04/10/2013 - 13:51 | 3432298 Bicycle Repairman
Bicycle Repairman's picture

Cyprus still has its bitcoins, right?  So what's the big deal?

Wed, 04/10/2013 - 14:29 | 3432522 1100-TACTICAL-12
1100-TACTICAL-12's picture

Can one even wipe their ass or burn a BitCoin for heat? Hell I'd rather have Benny Bucks @ least they are good for something..

Wed, 04/10/2013 - 15:14 | 3432938 Citxmech
Citxmech's picture

Bitcoin is the monetary form of the Emperor's new clothes.

Wed, 04/10/2013 - 13:58 | 3432344 smlbizman
smlbizman's picture

i dont think their is any citizen anywhere that thinks any part of the states assets belong to them...why should they....hell, we dont  have a voice. why would one think they have anything else..... we are owned and when you're owned you don't own.... man i have to stop these 6 martini lunches...

Wed, 04/10/2013 - 12:14 | 3431826 silverserfer
silverserfer's picture

this is how gold confiscation occurs. No need for executive orders and fearmongering. Between the cash for gold programs for the sheep and govt bailouts for gold reservs for nations. they have it on lockdown 

Wed, 04/10/2013 - 14:22 | 3432473 bagehot99
bagehot99's picture

Sadly, the average Cypriot probably doesn't appreciate that this gold belongs to HIM, and is simpy held by the bank as his agent.

We are witnessing central banks, banks and bankers simply stealing money from their depositors and citizens. And we're all arguing about guns and gays.

Obama didn't miss much during his Marxist misdirection classes.

Wed, 04/10/2013 - 14:57 | 3432782 Panafrican Funk...
Panafrican Funktron Robot's picture

Some other countries with non-trivial gold holdings on the hit list:




Greece (already hit, 82% of their reserves in gold)


Portugal (who has 90% of their reserves in gold)


And the big whales, Italy and France

What do all these countries have in common?  Do the various crises seem random to you now?

Wed, 04/10/2013 - 13:06 | 3432090 Overfed
Overfed's picture

I sure hope they don't launch before the UPS guy gets here today. I'm waiting on some important parts, dammit. ;-)

Wed, 04/10/2013 - 10:57 | 3431329 cifo
cifo's picture

All part of the template for future actions.

Wed, 04/10/2013 - 10:58 | 3431340 idea_hamster
idea_hamster's picture

Actually, the national tradition was skirting the rules -- that was what they were selling as a money-laundering bank haven.

Now they're selling what portion of their assets were in the rest of the world's tradition.


Wed, 04/10/2013 - 11:11 | 3431426 kliguy38
kliguy38's picture

CONfiscation now the watchword in the endgame.......CONfidence has played its hand.......CONtrol will remain peeps

Wed, 04/10/2013 - 11:47 | 3431651 BeaverFever
BeaverFever's picture

Why didn't they just confiscate their valuable bitcoins and call it a day?

Wed, 04/10/2013 - 12:44 | 3431977 Lugnut
Lugnut's picture

I have bitcoins that are gold colored. I will sell them to you for $400 each.

Wed, 04/10/2013 - 11:50 | 3431616 Ghordius
Ghordius's picture

+1 for "the national tradition was skirting the rules"

I'm having a fit of laughter about many of the things that are being written here

Tyler, I presume your innocence/ignorance, hence a warning: you might get a totally different opinion of the whole Cyprus Affair in the next years, i.e. when the dust settles and a few ugly truths emerge

Wed, 04/10/2013 - 11:49 | 3431664 Ghordius
Ghordius's picture

btw, regarding "poor" Cypriots as many are writing here... average household net worth in Cyprus is... north of 600'000

yup, Cypriots are "richer" than Americans and Britons, according to the official statistics of the national bank of Cyprus

see recent article in the WSJ

Wed, 04/10/2013 - 12:11 | 3431802 tenpanhandle
tenpanhandle's picture

one russian billionaire + one thousand destitute cypriots = average .... everyones a millionaire.


(   no junk from me:)  )

Wed, 04/10/2013 - 12:27 | 3431901 Ghordius
Ghordius's picture

+1 x Cypriot citizens previously only Russian citizens that received a passport through their friendly Cypriot banker? yes, this might have an impact, as I was already ranting about earlier today (reading the WSJ article)

Wed, 04/10/2013 - 14:25 | 3432496 Oh-Globits
Oh-Globits's picture

correction: They are selling their "barbaric relics" for valuable fiat euro-paper...seems like a fair trade...mmmm

Wed, 04/10/2013 - 15:44 | 3433162 Pseudo Anonym
Pseudo Anonym's picture

yeah, hofjuden

Serfdom to an unelected dictatorship

Wed, 04/10/2013 - 10:51 | 3431251 fonzannoon
fonzannoon's picture

It's just a helping hand hedgeless from one friend to another. They will give the gold back once those Cyrpriots are back on their feet. That's what the Euro is all about.

Wed, 04/10/2013 - 11:59 | 3431735 Ghordius
Ghordius's picture

fonz, you mean "once those Cypriot banks are bank on their feet" - it was never about Cypriots and all about two banks there

meanwhile re "one friend to another" may I note that many europeans felt at that time that Cyprus should not be allowed to join?

main reason was the Turkish population in the north and the unsavory character of their political class

it was only after heavy pressure by the UK and Greece (with more support by Uncle Sam) that we relented

afterwards I had a fit of laughter when Cyprus joined the opposition to Turkey's entry to the EU, to great chagrin of the US diplomatic corps under Bush that simply did not see this coming

Wed, 04/10/2013 - 14:20 | 3432457 e-recep
e-recep's picture

europeans plunder cyprus much more thoroughly than the turks. it must be the savory character of the european political class.

Wed, 04/10/2013 - 10:52 | 3431277 McMolotov
McMolotov's picture

The more I listen to Draghi, the more that quote stands out as an implied threat. Pay attention, all you Euro-peons.

"I must break you." —Mario "Ivan Drago" Draghi

Wed, 04/10/2013 - 11:04 | 3431375 flacon
flacon's picture

Do you have a video clip of this? 

Wed, 04/10/2013 - 11:08 | 3431407 McMolotov
McMolotov's picture

These questions are formulated by people who vastly underestimate what the Euro means for the Europeans, for the Euro area. They vastly underestimate the amount of political capital that has been invested in the Euro. And so they keep on asking questions like: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happen if." No Plan B.

Wed, 04/10/2013 - 11:15 | 3431449 Bearwagon
Bearwagon's picture

We shall always remember  :-)

Wed, 04/10/2013 - 11:40 | 3431606 Big Slick
Big Slick's picture

"Go for it." - Rocky "Gold and Silver Stacker" Balboa

Wed, 04/10/2013 - 11:19 | 3431469 flacon
flacon's picture

Thanks, although I don't think he directly said: "I must break you."

although he may have implied it. 



Wed, 04/10/2013 - 11:28 | 3431521 McMolotov
McMolotov's picture

Ivan Drago, from Rocky IV:

Wed, 04/10/2013 - 12:24 | 3431884 Ghordius
Ghordius's picture

hedgeless and McMolotov - how much do you really know about the eurozone? it's difficult to estimate Draghi's "political capital", but his words do resonate strongly, here

just as an example, all countries collect various polls, twice a year, with questions that have no counterpart in the US. from last fall:

"Are you for/against a European monetary union with one currency, the euro?"

                FOR / AGAINST

Germany        69 / 26

France            69 / 27

Italy               57 / 31

Belgium          69 / 29

Netherlands  75 / 22

Luxembourg   72 / 26

Austria         66 / 28

Spain           63 / 30

Portugal        55 / 37


UK              14 / 80

just note what an outlier that the Brits represent (and remember how vocal their media is in the Anglosphere)

btw, those 14% for the EUR in the UK are probably mostly... Scots

Wed, 04/10/2013 - 12:33 | 3431918 Raven Nation
Raven Nation's picture

IIRC, would these poll results reflect what a lot of financial people have pointed to as a central problem of the Euro Zone i.e. you can't have a monetary union without a fiscal union.

Not to argue for or against the Eurozone itself but having one without the other is essentially unworkable?

Wed, 04/10/2013 - 12:36 | 3431946 Ghordius
Ghordius's picture

that's pure bankster propaganda. when gold was money everywhere, where was the global fiscal union?

Wed, 04/10/2013 - 13:37 | 3432237 akak
akak's picture

The difference there was that gold was not an unstable and fundamentally unsustainable fiat currency.

Wed, 04/10/2013 - 13:56 | 3432330 Ghordius
Ghordius's picture

this makes little difference when it comes to balance a budget, or only spend what you get in as taxes

and finally... debt is even harder, in gold

Wed, 04/10/2013 - 19:56 | 3434348 StychoKiller
StychoKiller's picture

Therefore:  "Neither a borrower, nor a lender be." -- Shakespeare

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