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Hypo Group: Difficult Negotiations with Austrian State

Politics ♦ Published: October 9, 2012; 19:18 ♦ (Vindobona)

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The nationalized banking group urgently needs a capital injection. This year, the capital shortfall will be reduced by € 1.5bn.

Hypo Group: Difficult Negotiations with Austrian State / Picture: © Wikipedia / JJ55 (30 March 2008)

The negotiations between the Austrian Hypo Group Alpe Adria and its only shareholder prove difficult. In total, the nationalized bank has a capital shortfall of € 2.2bn. According to OeNB (Austrian National Bank), a capital injection of € 1.5bn must be performed this year. The bank´s equity ratio should exceed 12%, OeNB and FMA stated. The remaining € 700m may be paid until the…