VIENNA Feb 10 Raiffeisen Bank International Chief Executive Karl Sevelda said the Austrian government will find it hard to get commercial lenders to support a "bad bank" for ailing state lender Hypo Alpe Adria , a newspaper reported.
The government wants healthier banks such as RBI, Erste Group and Bank Austria to support a bad bank that would absorb toxic assets from Hypo and relieve its chronic need for fresh capital.
"I see creating a bad bank as sensible, but I think it will be difficult to get the other banks involved," Sevelda was quoted saying by newspaper Die Presse in an interview printed on Monday.
"I was often asked at the road shows in New York and London for our capital increase if we are taking part in a band bank for Hypo. As a listed company I can't do this at all. The shareholders would oppose it," he added.
In a separate interview with the Oesterreich newspaper, Finance Minister Michael Spindelegger declined to rule out letting Hypo go bust, should talks with other banks fail, although the central bank has warned this could unleash a chain reaction that could endanger Austria's credit ratings.
"If no solution is found with the banks then nothing is ruled out. For me this is a matter of finding the best solution for taxpayers. There are no taboos," Spindelegger said. (Reporting by Michael Shields; Editing by David Holmes)