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VBAG: Complete Write-Off Possible

Published: January 4, 2014; 18:43 · (Vindobona)

The Austrian state may has to write down its interest completely. Further capital injections are very likely. Also VBAG´s other shareholders will be obliged to provide fresh funds for the ailing bank.

VBAG: Complete Write-Off Possible / Picture: © Flickr

The weak point of the Austrian banking sector is the nationalized banking sector. At the end of last year, total assets of these banks came at 28% of Austria´s GDP. Besides the fully nationalized banks Hypo Group Alpe Adria and Kommunalkredit/KA Finanz, the partly nationalized bank VBAG is causing worries for the Austrian government.

Due to the high losses in CESEE, the seventh…

This article includes a total of 556 words.

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