Cyprus Bailout | Turkish Cypriot Claim to Gold Reserves

Cyprus Bailout | Turkish Cypriot Claim to Gold Reserves

Putting aside the impact that the rumour of selling the south’s gold reserves has had on the gold market, a 9% drop in the price of gold in a day, the largest drop in 30 years. There seems to be a problem of ownership. According to the Turkish daily Hurriyet (15.04.13) the TRNC Finance Minister’s father, Rustem Tatar, states that the gold part-belongs to Turkish Cypriots:

“The Turkish Cypriots may have separated from the Greek Cypriots, but they haven’t still get an official divorce. Turkish Cypriots have also shares at the public resources like the natural gas and the gold reserves.” [Translation]

Rustem Tatar was an economic adviser of the Turkish Cypriot committee during the London-Zurich agreements in 1960 and he understands that the 14 tons of gold reserves were bought by the Central Bank of Cyprus in 1960. He believes that as these reserves belonged to the newly independent Republic of Cyprus, Turkish Cypriots have a claim on them. Perhaps part of the gold should be set aside pending a settlement of the Cyprus Problem?

 

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