• Austria's news in English

Carinthia asks Vienna for financial support

The Local · 27 Apr 2015, 12:17

Published: 27 Apr 2015 12:17 GMT+02:00

Facebook Twitter Google+ reddit

Carinthia is asking Vienna for financial support, saying it will run out of money by the beginning of June without help.

Carinthia provided debt guarantees to fuel Hypo's expansion before the practice was stopped in 2007, but the last ones do not expire until around 2017.

With an annual budget of €2.2 billion ($2.36 billion), Carinthian officials have said the province cannot honour nearly €11 billion of backing for Hypo debt that creditors could demand.

Ratings agency Moody's downgraded Carinthia last month to one notch above junk grade, making it more difficult to borrow in the open markets.

Carinthia needs €340 million this financial year and is hoping for loans from the capital, a spokeswoman for the province said after meetings last week.  

She added that Carinthia would run out of money in June without help, confirming local media reports.

Austrian Finance Minister Hans Jörg Schelling (ÖVP) has indicated that Vienna could help out, providing certain conditions are set such as a risk premium on interest rates, and Carinthia agreeing to carry out further financial reforms.

Speaking before negotiations on Monday Carinthian Governor Peter Kaiser (SPÖ) said: "All provinces are funded by the Federal Financing Agency, and so far, Carinthia has always repaid everything on time. There is, in my view, no reason not to grant such financing. "

Story continues below…

No Austrian province has ever gone bankrupt and there is no legislation on how to handle such an event.

For more news from Austria, join us on Facebook and Twitter.

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Verdict on swimming pool rape case overturned
The Theresienbad swimming pool in Vienna. Photo: Wikimedia

An Iraqi refugee who was jailed after claiming it was a sexual emergency when he raped a boy in a swimming pool has had the sentence overturned.

Vienna Comic Con promises to be 'bigger and more galactic'
Cosplay star Yaya Han. Copyright: Yaya Han/Bryan Humphrey

Comic Con returns to the Austrian capital on November 19th-20th at the Messe Wien.

Three refugees arrested on drugs charges
Cannabis plants. Photo: J. Patrick Bedell/Wikimedia

A gang of three Afghani drug dealers has been busted in Vienna.

Hungarian woman crushed by snowcat piste machine
Snowcat machine. Photo: Melensdad/Wikimedia

A young Hungarian woman has died after being crushed by a snowcat piste machine on the Dobratsch mountain in Carinthia.

Austrian policeman sentenced over 'Heil Hitler' salute
Photo: Flickr

A policeman in Austria was sentenced on Thursday for shouting "Heil Hitler" at a driver during a traffic check at the Hungarian border in April.

Scary clown craze endangers crucial work of clown 'doctors'
Photo: Bojan Tavcar

Within the last couple weeks, disturbing events involving masked individuals has caught public attention in Austria.

Chimney sweep rescues lost mushroom picker
Photo: James Lindsey/Wikimedia

A 76-year-old Austrian man who went out mushroom picking almost froze to death after getting lost and spending the night in the forest.

Refugees sold into forced prostitution
File photo: UNHCR

Female refugees are being sold into forced prostitution in Austria, a police investigation into human trafficking has found.

Driverless bus takes a spin around Salzburg's old town
The Arma driverless shuttle bus. Photo: Navya

A driverless minibus has made a test journey in the city of Salzburg.

No jail time for asylum seeker who dumped baby in road
Photo: Paul Gillingwater

A man who grabbed his own child and dumped her in the middle of a busy road has been given a nine-month suspended sentence.

12 brilliant German words you won't find in English
Sponsored Article
Last chance to vote absentee in the US elections
Five films which will change your mind about Austrian cinema
Those surprising Austrians!
100 years since the last emperor's death
Afghani family's new home in Austria
Der you learn Deutsch?
Delighted by the light
Beware these passport scams
Of course we skipped Oarsch
Foodies rejoice at the choice!
Travel & Tourism
10 years after her escape from captivity
Surviving the Brexit for British expats
Day 2 of the World Bodypainting Festival 2016
Is Islam hostile to Western society?
Bodypainting festival in southern Austria
Europe's ice cream capital
Best Austrian beauty spots
Travel & Tourism
Three days in Vienna as a tourist
How to make friends in Austria
jobs available