Tuesday, December 5, 2023

Austria Seeks €3.5 Billion From BayernLB

Must Read
Lisa Fischer
Lisa Fischer
Lisa Fischer is a seasoned journalist with a talent for uncovering hidden stories. With over nine years of experience, she has made a name for herself in the industry with her insightful reporting and writing. Lisa holds a degree in journalism from the University of Vienna and has worked for prominent Austrian newspapers. Her work has been recognized with several awards and she is committed to delivering thoughtful and thought-provoking journalism to her readers. Known for her persistence and integrity, Lisa is a valuable member of the Austrian journalism community.

Austria has filed a lawsuit against BayernLB on the grounds that it believes it was misled by the German lender over the true financial state of the Hypo Alpe Adria bank, which had to be nationalised in 2009.


Austrian Finance Minister Hans Jörg Schelling said the suit filed at the commercial court in Vienna sought €3.5 billion in compensation from BayernLB.

“This is not a day to make jokes,” he told reporters. “We’ve been considering all the alternatives for months. We are committed to the taxpayers.”

He added that the move followed the failure of settlement talks, but he remained open to further negotiations.

Earlier this year Austria introduced a special law that imposed losses on holders of €890 million of Hypo Alpe’s state-guaranteed debt.

The same law also voided €800 million of loans owed to Munich-based BayernLB, which acquired a majority stake in the lender in 2007.

Hypo Alpe was nationalized by the Austrian government in 2009 to save it from collapse, after it took on bad loans in the former Yugoslavia.

Latest News

UK Joins US in Supporting Israel in the Israel-Palestine War

In a significant development, the UK has revealed plans to enter the Israel-Palestine conflict by conducting surveillance flights over...

More Articles Like This