Even as the scope of the Cyprus banking disaster grew worse....17 eurozone finmins approved its 10bn euro bailout in Dublin.
A draft ECB report claimed that the island's bailout price tag increased to 23 bn euros/$30 bn...from 17 bn euros.
To make up for the estimated 13 bn euro shortfall...Nicosia will have to sell 10 tons of its gold reserves worth 400 mn...many other assets...and even raise taxes...thru 2016.
7.5 bn euros was the original estimate Nicosia needed to raise...to get its 10 bn bailout from the Troika.
Some wonder if Cyrus can raise the required funds...when its annual GDP is only 18 bn euros.
Experts predict economic activity will contract by 8.7% to more than 10% in 2013.
In the Dublin finmin meeting...Ireland and Portugal each got 7 years more to repay their bailout funds.
Ireland's money runs out in 2013...and Lisboa's 78bn ends in 2014.
ALL 27 EU members must approve the extensions.
With Cyprus required to sell much of its gold reserves...others are asking if this is a one-off...or a taste of things to come...for distressed Portugal, Greece and Ireland.
Even the struggling big nations...like employment troubled Spain..and languishing Italy...must also be worried. Collectively...the 5 hold over 3,200 tons of gold worth...125 bn euros!
News of the possible Cyprus gold sale...sent the price of bullion down on Thursday.
On Friday...gold fell below $1,500 per ounce...into bear territory for the 1st time in 12 years.