EU COMPETITION: EC Calls for Urgent Restructuring of Austrian Hypo Bank
EU Competition Commissioner Joaquim Alumnia warned March 8 that Hypo Alpe Adria Bank International AG faced possible liquidation. Hypo is the only Austrian bank negotiating a restructuring plan with the EU, according to a spokesman for the European Commission.
Hypo was nationalised in 2009 and, subsequently, received three-year contract extensions to show a “sign of stability,” said the Klagenfurt, Austria-based lender.
Austrian taxpayers have so far subsidised Hypo Alpe with €1.76 billion in capital. Public guarantees of about €16.7 billion still loom over the bank. The EC has yet to approve the support. The bank wants to sell subsidiaries in Eastern Europe. (BJ)