Nationalization of VBAG: Austrian State Holds 49%

Politics ♦ Published: February 28, 2012; 11:33 ♦ (Vindobona)

After Kommunalkredit and Hypo Group, VBAG becomes the third Austrian bank which is publicly owned.

Nationalization of VBAG: Austrian State Holds 49% / Picture: © Österreichische Volksbanken-AG (ÖVAG)

Chancellor Werner Faymann and Vice-Chancellor Michael Spindelegger emphasized that a sale of VBAG would have been more expensive than the partly nationalization. According to Faymann, in the worst-case scenario the deposit guarantee would have cost € 10bn. Furthermore, guarantees of € 3.0bn would have been necessary.

The publicly held stake in VBAG increases to 49%, says…