Author Topic: Austria: Decisions about Hypo Group Expected This Year  (Read 1802 times)

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Howard Bourne

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Austria: Decisions about Hypo Group Expected This Year
« on: October 25, 2013, 17:12:30 PM »
Decisions about the future of problem bank Hypo Alpe Adria will in all likelihood be delayed.

  
 
Klaus Liebscher, head of Hypo Group’s task force which was appointed by the Austrian government, expects a result about the future of the problem bank to be presented in two to three weeks. Initially the options were supposed to be presented in October. Liebscher is hoping for a final decision about the further course of action to be taken before the end of this year.
Recently there was talk about establishing a downsizing unit, i. e. a bad bank, where up to € 19bn of bad loans and non-marketable units of Hypo should be transferred to. Liebscher denies the delay having to do with the uncertainty whether or not Finance Minister Maria Fekter will continue to stay in office. “This is not an argument for me,” he claimed. According to him it was an “incredibly complex issue”. The results will be presented to the policital decision-makers, to the Chancellor and his deputy as well as the Finance Minister. “It would be appealing if this [decision] could be made as early as this year. However, a political strategic direction would be a major benefit,” Liebscher emphasized.
Apparently three different versions in the volume of € 12bn to € 19bn are currently being negotiated about. All versions plan for the participation of Austrian banks in a bad bank so the official level of public debt will not increase.

Source: https://www.friedlnews.com/article/austria-decisions-about-hypo-group-expected-this-year