The Austrian state has nationalised Hypo Group Alpe Adria, the
country’s sixth largest bank, after a weekend of intense
shareholder negotiations.
Shareholders BayernLB, the insurer Grawe and the state of
Carinthia will all surrender their stakes in the bank, and inject
some €1 billion in capital.
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Michael Kemmer, chief executive of BayernLB and head of Hypo’s
supervisory board, resigned following the nationalisation.
Many of Hypo’s present difficulties stem from rising loss
provisions in the Balkan region, where it had greatly expanded its
leasing business in the last seven years.
On the same day as the nationalisation, Austria’s central bank
warned that the country’s banks – which have some €200 billion in
exposure to the CEE region – may see €10 billion of writedowns over
the next two years.
Fred Crawley
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