That's not confirmed by anyone though, only rumors, but I think it has to be true, based on the composer and the sound of the song in general!
Someone close to Sony had confirmed this months ago I remember reading.
http://www.oikotimes.com/eurovision/2012/04/02/parliament-refuses-to-pay-eurovision/
Cyprus likely to withdraw from eurovision song contest i hope it doesn't happen
Guys, we're talking about oikotimes. They're the ESC tabloid blowing things out of proportion. I wouldn't worry about anything.
The crisis emerged last night between CyBC and the Parliament is about to be resolved on Thursday. There is a big fight to get approval for the Eurovision 2012 delegation and Sony Music Greece is optimistic that in the end there will be a solution as CyBC already paid participation in Baku 2012 Eurovision Song Contest.
The country will face a heavy penalty if not participating in the contest which will be definitely an amount more than the Baku costs not to mention 2 years banning from the contest if EBU get angry. CyBC Eurovision commentator Melina Karageorgiou stated on Facebook that the budget cuts are huge for entire CyBC program and worries for Eurovision 2012 participation as well.
Last night Evi Papamichael (HoD for Cyprus) accused the political games and warned everyone that the country will pay a huge fine and the team for Baku will have to withdraw. The team of Ivi Adamou and the singer herself are very optimistic and call the fans not to worry as the crisis till be resolved by the end of the week, actually a new voting is set for Thursday.