UPDATE 1-Raiffeisen wants to pay back state aid by 2015 -report

Sun May 26, 2013 10:07am EDT

Related Topics

(Adds no comment from Raiffeisen)

VIENNA May 26 (Reuters) - Austria's Raiffeisen Bank International wants to pay back 1.75 billion euros ($2.26 billion) of state aid by 2015, a newspaper reported on Sunday, citing an insider.

The Wiener Zeitung said the bank's top committees had decided on the step, provided that the market environment did not deteriorate further, because interest payments on the so-called participation capital were set to rise steeply in 2015.

Raiffeisen, whose chief executive resigned over an offshore property deal scandal on Friday, said it did not comment on rumours.

The bank could raise the money by increasing its free float, the newspaper said, or by selling a stake, for example in Austrian insurer Uniqa, in which it owns 45 percent.

RBI is 78 percent owned by Raiffeisen Zentralbank, Raiffeisen Group's Austrian arm.

Raiffeisen has until now said it was in no hurry to pay back the aid it and other banks got when the 2008/09 financial crisis erupted, and rival Erste Group has said the same. ($1 = 0.7734 euros) (Reporting by Georgina Prodhan; Editing by Helen Massy-Beresford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.