Austria: Spindelegger Puts Pressure on BayernLB

People ♦ Published: March 17, 2014; 12:29 ♦ (Vindobona)

In the dispute with BayernLB, former parent company of problem bank Hypo Group Alpe Adria, Finance Minister Michael Spindelegger calls for a tougher approach.

Negotiations with BayernLB are intended to be initiated within this month. / Picture: © BayernLB

“Those € 2.3bn of Bayern(LB) deposited in the bank are not going to be paid back,” the Finance Minister told Austrian daily “Presse”. According to him, the negotiation position of Austria was not as bad as suggested by many experts. The amount of € 3.2bn derives from a loan given by its former parent company out of a financial distress. However, Hypo Group does not want to…