Hypo bank makes further shocking losses
The Local · 28 Aug 2014, 12:49
Published: 28 Aug 2014 12:49 GMT+02:00
- S&P's downgrades three Austrian banks (13 Aug 14)
- Hypo bank defaults on bond payments (07 Aug 14)
- Fischer signs Hypo law (31 Jul 14)
- World Bank hit by Hypo bank 'bail in' (16 Jul 14)
The enormous losses were made shortly before the crisis-ridden bank was due to be dismantled.
According to a statement on Wednesday, the losses were due to non-routine accrued liabilities of over €1.44 billion. The liabilities were needed to ease out an Italian Hypo subsidiary and its south European network from the failing Hypo bank, said the statement.
This time, the Hypo will not need any finance injections from the state to close the hole in its budget. In mid-August, a special law was passed for a loan capital cut of €1.6 billion.
Since 2008, €5.5 billion worth of taxpayers' money has been poured into the ailing bank. The Hypo's costs have contributed to pushing state debt up to 80 percent of the gross domestic product (GDP) this year.