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National Bank Warns against Foreign Currency Loans

Published: February 3, 2011; 00:34 · (Vindobona)

According to the governor of the Österreichischen Nationalbank (OeNB, Austrian National Bank), Ewald Nowotny, the sum of pending foreign currency loans in Austria is € 54bn.

National Bank Warns against Foreign Currency Loans / Picture: © SW Umwelttechnik

Ewald Nowotny sees a "foreign currency loans as a huge risk exposure”. Most loans of a total of € 54.0bn are in Swiss francs: € 47.0bn. In 1999, the sum of the loans in Swiss francs amounted to only € 20bn.

Nowotny considers that the reason for this development is "too little control on financial advisors". The "excessive competition” between Austrian banks has also…

This article includes a total of 150 words.

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