Austrian province set to avoid bankruptcy as creditors accept haircut

Austria's Carinthia province stepped back from the brink of possible bankruptcy Tuesday when Finance Minister Hans Joerg Schelling announced that creditors have been accepting a haircut deal over the failed regional bank Hypo Alpe Adria.

Carinthia had backed bonds worth 11 billion euros (12.2 billion dollars) to finance the bank's high-risk expansion to the Balkans.

A sufficient number of creditors have accepted the deal under which they will receive 90 per cent of their investments over the course of 18 years, Schelling told reporters three days before the offer expires on Friday.

Hypo was nationalized by Austria in 2009, and its assets have been partly sold and partly parked in a restructuring unit.

Major German banks and insurers - including Commerzbank, NordLB and Allianz - have been trying to recover 7 billion euros that they had lent to Hypo.

Last update: Tue, 04/10/2016 - 14:55
Author: 

Related

More from Europe

Merkel not watching Trump inauguration, as US-German business warns

The American Chamber of Commerce in Germany warned incoming US president Donald Trump on Friday against leading the...

Report: Eight survivors, two children found in Italy hotel

Italian rescuers located a total of eight survivors, including two girls, at a central Italian hotel that was...

Poroshenko's chocolate factory in western Russia to end production

Ukrainian President Petro Poroshenko's eponymous Roshen chocolate factory in the Lipetsk region of western Russia...

Swedish population tops 10 million

The population of Sweden officially hit the 10-million mark on Friday, Statistics Sweden said, citing a rise in...

EU parliament rejects money laundering blacklist for being too short

European Union lawmakers Thursday rejected a blacklist compiled by the European Commission of countries deemed to be...