VBAG Expects Massive Loss

Professional ServicesBanks ♦ Published: October 14, 2011; 13:51 ♦ (Vindobona)

The Austrian bank has to write off € 700m on the book value of its participations in Investkredit and Volksbank Romania. The state’s participation capital will not be repaid this year.

VBAG Expects Massive Loss / Picture: © Volksbank AG

Since last year, Oesterreichische Volksbanken-Aktiengesellschaft (VBAG) has focused on the redesign of its business model and has evaluated strategic options. In particular, the major deterioration of the market environment for banks, the severe crisis on international financial markets as well as extraordinary impairment requirements on country risks, on participations, and from the…