Austrian Bank Aids: Losses Total € 3.4bn

Politics ♦ Published: July 23, 2012; 18:50 ♦ (Vindobona)

The nationalized banks are a substantial risk factor for Austria´s budget. Losses may increase further.

Austrian Bank Aids: Losses Total € 3.4bn / Picture: ©

Only this year, the Ministry of Finance injected more than € 2.0bn to Austrian banks. The bail-out of VBAG totalled € 950m. KA Finanz, the bad bank of Kommunalkredit, received € 1.2bn. Further capital injections are necessary, analysts say. Hypo Group Alpe Adria, which was nationalized in 2009, may record a capital shortfall of € 5.0bn. The bank has a risky exposure of more than…