Austria: Downsizing Models for Hypo

People ♦ Published: October 4, 2013; 10:16 ♦ (Vindobona)

Currently, everything revolves around the establishing of a bad bank despite of Finance Minister Maria Fekter’s objection. However, now, after the elections, this issue needs to be resolved.

Austria: Downsizing Models for Hypo / Picture: © Vindobona.org

Possible options about the downsizing of the ailing banking institute are supposed to be presented at the beginning of next week.

One of these options is the creation of a fund company where non-performing loans could be deposited since neither the Austrian Banking Act (Bankwesengesetz) is applied here nor do capital requirements have to be met. According to Chairman of the…