Austria Must Implement Liquidation Mechanism for Banks

Politics ♦ Published: September 13, 2013; 19:51 ♦ (Vindobona)

In order to minimize fiscal losses, Austrian problem banks should be liquidates soon, IMF claims. In this case, Austria would not reach its fiscal targets in the next years.

Austria Must Implement Liquidation Mechanism for Banks / Picture: © Vindobona.org

Regarding Austria´s banking sector, the IMF emphasizes the necessity of a liquidation mechanism for problem banks. Moreover, the experts of IMF suggest implementing a deposit protection fund for domestic savers.

The private sector, by contrast, is not endangered of over-indebtedness. Risks for private borrowers are rather low as only 36% of the Austrians are indebted. In case of…