Austria: Carinthia Forced to Pay for Hypo Group

People ♦ Published: March 17, 2014; 18:36 ♦ (Vindobona)

Finance Minister Michael Spindelegger announced wanting to include the federal province of Carinthia to participate in the downsizing costs for ailing bank Hypo Group Alpe Adria. Austerity measures are “inevitable”.

Hypo Group will require further financial backing in the coming weeks. / Picture: © Wikipedia / JJ55 (30 March 2008)

The province gained revenues in the amount of € 500m from the sale of Hypo Group to former parent company BayernLB which now have to be used for the downsizing. If necessary, special laws will be introduced to ensure the participation of the province as well as by investors of the problem bank, according to Austrian Justice Minister Wolfgang Brandstetter.

By the saving of Hypo…