Nationalization of Banks Not Excluded Anymore

People ♦ Published: October 31, 2011; 19:28 ♦ (Vindobona)

According to the Minister of Economics, Reinhold Mitterlehner, in the worst case scenario a partly nationalization of banks could take place.

Nationalization of Banks Not Excluded Anymore / Picture: © Wikipedia / Manfred Werner / Tsui

If the measures of the banks in order to prevent a credit crunch do not suffice anymore, Mitterlehner says that a nationalization of Austrian banks has to be considered. But this would be the very last step, Mitterlehner points out.

When the financial crisis hit the Austrian banks in 2009, the Austrian state provided funds of € 9.0bn for them. The state aid has been distributed…