© Europics
20. 07. 12. - 16:10
State banks need further bailouts
Austria’s nationalised banks will need further billion euro bailouts, according to a report in Austrian weekly "Format".
The Hypo Alpe Adria bank could need as much as 5 billion Euros to stop it from sinking, says Format citing confidential papers the bank produced for the finance ministry.
What is more, the Kommunalkredit/KA Finanz bank has already asked for another capital injection of 500 million Euros.
The report added that the partially nationalised ÖVAG could also be looking for state handouts of undisclosed amounts.
Austria has already pumped 8 billion Euros into its nationalised or partially nationalised banks, and the report added that even bigger sums will be needed in the next few years. It drew on figures from the finance ministry and other state authorities.
Hannes Androsch, vice chairman of the state holding company FIMBAG, estimated the three banks’ "problematic assets" to be worth 30 to 35 billion Euros.
He said that this money was not entirely lost but "it would be an illusion to assume that no part of it would be lost."
