Bank Austria Writes Off Greek Bonds

People ♦ Published: February 13, 2012; 12:18 ♦ (Vindobona)

The Austrian subsidiary of the Italian UniCredit Group has to write off Greek sovereign bonds by € 100m.

Bank Austria Writes Off Greek Bonds / Picture: © UniCredit Bank Austria

For Bank Austria´s CEO Willibald Cernko, a Greek haircut is a “capital error”. Cernko refers to the agreement that there would be no national bankruptcy of a euro-zone member state. For him, the mutual trust is damaged sustainably.

For the balance of 2011, Bank Austria has to write off further € 100m of Greek sovereign bonds. Nevertheless, total profits would be positive,…