Austria: Kommunalkredit May Become Even More Expensive

Politics ♦ Published: January 26, 2013; 20:07 ♦ Updated: January 26; 20:24 ♦ (Vindobona)

According to experts, the bail-out of the Austrian fully nationalized bank is not managed yet. Austrian taxpayers must expect further capital injections.

Austria: Kommunalkredit May Become Even More Expensive / Picture: © Kommunalkredit

A new expert´s opinion focuses on the credit default swaps of Kommunalkredit. According to the expert Gerhard Altenberger, the bail-out has been costing taxpayers more than € 5.8bn. This figure includes capital injections, loans and guarantees.

This was reported by the Austrian news magazine “Format”. The high costs were mainly due to “a series of management errors”.…