FRIDAY, APRIL 12, 201317:01:22

Cyprus to sell gold, Slovenia a bank

Economic and Financial Affairs Council (ECOFIN) ministers at Dublin Castle in Dublin, Ireland | AFP PHOTO / PETER MUHLY

More trouble for Cyprus and Slovenia

BY NEONLINE | APRIL 12, 2013 - 4:51PM

The Eurogroup have welcomed Cyprus' agreement with the Troika on refinancing and recapitalisation, saying the deal  "is fully in line with the parameters and key objectives set by the Eurogroup."

In a statement they added, "The Eurogroup notes with satisfaction that the Cypriot authorities have implemented decisive bankresolution,  restructuring and recapitalisation measures to address the fragile and unique situation of Cyprus' financial sector."

They continue, "The Eurogroup takesnote that the IMF’s Board is expected to consider in early May Cyprus’ request for a 3-year Extended Fund Facility of an amount of about EUR 1 bn. The ESM amount would then consequently be up to €9 billion."

They indicate that the first payments could be made by the middle of May.

European Commissioner Olli Rehn said that the figure of €23 billion needed to finance Cyprus, somewhat larger than the previous figure of €17 billion, was a gross figure, the lower one net. The higher figure was revealed in a leaked document, to the displeasure of the finance commissioner.

Mario Draghi of the European Central Bank has also told the Cyprus president that he will not be allowed to dismiss the govenor of the isle's national bank, the aptly named Panicos Demetriades.

Eurogroup head, Jeroen Dijsselbloem has told the Cypriots that selling gold would be an option for the island, although he said this was not a demand from either the Eurogroup or Troika.

Slovenia, which is believed to be the next in line for a fall will be putting its plans to avoid a bailout by presenting a privatisation programme to their parliament in the next fortnight.

A leading banker, Janko Medja, head of Nova Ljubljanska Banka has agreed with the government's estimate of €1 billion being required to recapitalise their three main lenders in the land.   EUROPE ON LINE