Bad Bank for Hypo Group?

People ♦ Published: August 5, 2013; 06:42 ♦ (Vindobona)

According to market rumors, Austria´s government wants domestic banks to participate in a bad bank for the nationalized Hypo Group. Finance Minister Maria Fekter denies such reports.

Bad Bank for Hypo Group? / Picture: ©

Austria´s government is said to create a bad bank for the financially stricken Hypo Group and KA Finanz. The bad bank would buy non-performing loans of more than € 20bn from the nationalized banking groups. Austrian privately held banking groups are said to acquire shares in the bad bank. However, Austrian banks would only accept participating in the bad bank if the bank taxes were…