Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Austria might move ÖVAG assets to Hypo

Share this article

Austria might move ÖVAG assets to Hypo
File Photo: APA
17:57 CEST+02:00
According to a report from Bloomberg, Austrian regulators are considering the option to move non-performing assets from the ailing Volksbank AG (ÖVAG) into the portfolio of the disastrous Hypo Alpe Adria Bank.

Austria's parliament recently passed a law that saw many important bond holders for the ill-fated Hypo Alpe Adria Bank lose significant amounts of money.

Now, certain assets within Austrian Volksbank AG are causing considerable losses, such as ÖVAG’s Romanian unit, plus a portfolio of corporate and real estate loans.  By moving these non-performing assets under the umbrella of the already-failed Hypo Alpe Adria Bank, the Austrian Volksbank could significantly improve its capital ratios.

Further, such a move could reduce the need for write-downs if ÖVAG fails the European Central Bank’s Comprehensive Assessment in October, according to un-named sources familiar with the matters.

According to a report last week in the Austrian daily Der Standard, Volksbanken-Verbund, the combination of ÖVAG and nearly 50 regional cooperative banks that own it, will likely fail the health check the ECB is conducting before it begins to supervise euro-area banks on Nov. 4.  

There is likely to be a capital shortfall of €600 million (US$788 million) to €800 million.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

Is this the world’s most international business school?

It's not just one of the world’s leading business schools. It’s also a chance for students to have a truly international undergraduate experience.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement