Author Topic: Austria's Hypo Alpe Adria needs more state aid soon  (Read 2302 times)

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Offline mayya

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Austria's Hypo Alpe Adria needs more state aid soon
« on: November 09, 2013, 19:26:18 PM »
Austria's Hypo Alpe Adria needs more state aid soon

VIENNA Sat Nov 9, 2013 2:42am EST

Nov 9 (Reuters) - Nationalised Austrian lender Hypo Alpe Adria needs more state aid quickly to meet minimum capital requirements and is in "final talks" with the government on this, the bank said.

It gave no figures on how much more help the bank, which has already got 3 billion euros ($4 billion) in assistance, will need to keep its capital above minimum levels that threaten to be breached at the end of the month, it said late on Friday.

Writedowns on assets in the first half had forced a 700 million euro capital injection at the bank that Austria had to nationalise in 2009 to avoid a collapse that would have sent shock waves through the region.

Hypo's need for more capital threatens the country's drive to cut debt and deficits and balance the budget by 2016.

It is also a major headache for Austria's two big parties which are trying to negotiate a coalition accord after stumbling to their worst showing since World War Two in September elections.

Austria's central bank in September denied a newspaper report that Hypo, which is selling or winding down non-core assets, could need as much as 17 billion euros more aid.
Austria said in September Hypo's sell-off could cost taxpayers up to 5.4 billion euros more by 2017 under a revamp package agreed with the European Commission. ($1 = 0.7491 euros) (Reporting by Michael Shields; Editing by Louise Ireland)