Austria: Hypo Group Disaster with Exorbitant Costs

People ♦ Published: March 11, 2014; 11:51 ♦ (Vindobona)

The extent of the disaster of Austrian problem bank Hypo Group Alpe Adria only starts to unfold bit by bit. A further capital injection of € 750m is needed only for the ailing bank to complete its balance sheets.

A further amount of € 750m is urgently needed for the bank to prevent Hypo Group from insolvency. / Picture: ©

Yesterday, Finance Minister Michael Spindelegger announced that the restructuring of the problem bank will be realized through a “public corporation”, as suggested by Hypo Group’s task force under the leadership of Ewald Nowotny, Governor of the Austrian National Bank (OeNB). While for this body there are no general state liabilities the downsizing of the bank has still two…