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Hypo Group: Fatal Errors of Austrian National Bank

Politics ♦ Published: December 30, 2013; 19:41 ♦ (Vindobona)

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Before Hypo Group Alpe Adria was nationalized in late 2009, the Austrian National Bank (OeNB) has misjudged the situation of the problem bank completely. The Austrian government demonstrates its incompetence once again.

Hypo Group: Fatal Errors of Austrian National Bank / Picture: © OeNB

At the end of 2008, the Austrian National Bank assumed that Hypo Group can be “restructured without any major problems”. In a report published by the Austrian magazine profil, OeNB wrote that Hypo Group Alpe Adria will generate a net income of € 225m in 2009. In that year, Hypo Group´s losses totaled € 1.55bn.

On the occasion of the the nationalization in December 2009,…