The troika wants Cyprus to sell €400 million worth of its gold (Photo: Bundesbank)

Cyprus economy to shrink 12.5% despite EU bailout

Cyprus' economy will shrink by 12.5 percent over the next two years and its government needs to sell part of its gold reserves in order to meet the conditions of an EU-IMF bailout, whose final details are to be agreed over the weekend.

According to internal papers prepared by the troika of international lenders and seen by Reuters and the Financial Times, Cyprus' total financing needs are now €23 bi...

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