Russia’s leading bank has managed to significantly lower the price it pays for the international operations group of Austria’s biggest banks. Sberbank bosses agreed with Volksbank AG (ÖVAG) managers to transfer 505 million Euros for all federal branches of Volksbank International (VBI) except its ailing Romanian department. Contracts sealing the takeover were signed in Vienna […]
The head of the Austrian National Bank (OeNB) has questioned Moody’s decision to lower the outlook on the Austrian economy’s further development. OeNB Governor Ewald Nowotny said yesterday (Tues) that the government’s 27-billion-Euro budget consolidation package “is a step into the right direction”. He said the rating agency may not have considered the coalition’s measures […]
A leading rating agency has sent shockwaves through Austria by threatening to downgrade its credit rating. New York City-based credit rating agency Moody’s announced last night (Mon/Tues) that it decided to put Austria on negative credit watch due to great uncertainty about whether Europe will be able to solve the worsening debt crisis. The outlook […]
Volksbank AG (ÖVAG) bosses and Sberbank chiefs will sign contracts about the planned takeover of Volksbank International (VBI) later this week, according to Austrian business papers. Reports from today (Mon) have it that the struggling Austrian bank eventually agreed with the Moscow-based finance sector giant about a takeover price for VBI. Sberbank declared interest in […]
An economist has rubbished claims that only the financial sector is to blame for the crisis. Stefan Bruckbauer, the chief economist of Bank Austria (BA), said on Saturday: “I don’t claim that banks are totally innocent since they financed the debtors.” Bruckbauer told the Kurier the Republic of Austria had to invest 1.7 billion Euros […]
Hypo Group Alpe Adria (HGAA) managed a solid performance, according to its CEO. Gottwald Kranebitter said yesterday (Mon) the bank could have reached the black in 2011. Kranebitter stressed that final figures for the past year would not be released before March. He said the current course was increasing the chance to find a new […]
Volksbank AG (ÖVAG) plans to dismiss one in five employees in a desperate attempt to avoid going bust. The loss-making bank, which received an emergency injection of one billion Euros from the state three years ago, said yesterday (Thurs) around 250 employees would lose their jobs in the coming months. This figure means that 20 […]
Bank Austria (BA) chief Willibald Cernko has said he plans to reduce the financial institute’s workforce level to get through the crisis. The banker announced yesterday (Mon) BA would have only 10,000 employees in Austria in 2015, 800 fewer than it had at the moment. Cernko underlined that sackings were not planned. He explained some […]
Volksbank AG (ÖVAG) will sack hundreds of employees in the coming two and a half years, according to a report. The Kurier claims today (Weds) that the struggling bank plans to dismiss 500 of its staff in Austria. This would mean that the bank – which did not comment on the report – would lay […]
People’s Party (ÖVP) Economy Minister Reinhold Mitterlehner has revealed that Austria would acquire banking stocks to save the finance institutes from ruin in the worsening economic crisis. Mitterlehner told national broadcaster ORF yesterday (Sun) that the Republic of Austria was ready to buy bank shares in a worst case scenario. Assumption of liabilities and paying […]