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Hypo bank makes further shocking losses

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Hypo bank makes further shocking losses
Hypo Alpe Adria Bank. File photo: APA/BARBARA GINDL
12:49 CEST+02:00
The nationalised Hypo Alpe Adria bank made overall concern losses of €1.67 billion (US$2.2 billion) as of the end of June 2014, according to its half-year balance published on Wednesday. The losses are far higher than any predictions or expectations.

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.

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