VBAG: Further State Aids Questionable

People ♦ Published: December 26, 2013; 23:31 ♦ (Vindobona)

The governing Austrian social democrats (SPÖ) are against providing further funds to the partly nationalized banking group.

VBAG: Further State Aids Questionable / Picture: © Vindobona.org

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. Not only Hypo Group Alpe Adria and Kommunalkredit/KA Finanz are still enormous risk factors for the Austrian state budget, but also VBAG. The fifth-largest Austrian lender may has to cover a major capital shortfall next…