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Hypo Group Insolvency: Total Damage of € 26bn

Published: December 17, 2013; 22:20 · (Vindobona)

Ewald Nowotny, governor of the Austrian National Bank (OeNB), warns of follow-up costs in case of a bankruptcy of the Austrian nationalized lender.

Hypo Group Insolvency: Total Damage of € 26bn / Picture: © Wikipedia / JJ55 (30 March 2008)

Due to its rapid expansion the Balkan region in the years from 2000 to 2008, more than 30% of Hypo Group Alpe Adria´s loan portfolio is estimated to be risky. This is the highest NPL quota among Austrian banks. In December 2009, the sixth-largest Austrian lender was nationalized. Since then, total losses came at € 3.5bn. Hypo Group´s expected capital shortfall ranges between € 4bn…

This article includes a total of 430 words.

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