Not surprisingly the outlook for the Cypriot economy has changed greatly since the original bailout cost was calculated.  

Two intriguing documents leaked yesterday show exactly where the €13 billion that Cyprus must raise will come from:

1. The resolution of Laiki Bank and restructuring of Bank of Cyprus including the bail-in of uninsured deposits will raise €10.6 Billion;

2. €600m from raising corporation tax, taxes on capital income, and increasing the bank levy on deposits raised by banks and credit institutions;

3. The sale of the majority of the gold reserves held by the republic €400m;

4. €1.6 Billion though privatizations of Semi State companies (Cyta, Electricity Authority, Ports Authority).

With another Eurogroup meeting being held tonight (12/04/2013) in Dublin, the whole of Cyprus holds its breath. For those who enjoy a bit of “light reading” here are the two draft documents from the European Commission, both in English.