Erste Group: Delayed Redemption of State Capital

Professional Services › Banks ♦ Published: June 24, 2011; 16:56 ♦ (Vindobona)

The Austrian bank will not repay the € 1.2bn of participation capital before the end of the month, probably due to the ongoing stress test.

Erste Group: Delayed Redemption of State Capital / Picture: © Erste Group / Christian Wind

Erste Group will most likely not be able to meet its desired deadline for an early redemption of the participation capital. The bank wanted to repay € 1.2bn to the state by the end of June. Erste was the first bank in the Alpine republic to get the non-voting state capital in 2009. The bank pays 8% interest on the capital, or € 98m per year. CEO Treichl said last month he would like…

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