June 12, 2013 / 7:52 AM / in 4 years

Austrian finmin opposes "bad bank" for Hypo Alpe Adria

1 Min Read

VIENNA, June 12 (Reuters) - Austrian Finance Minister Maria Fekter rejected on Wednesday calls to create a "bad bank" for nationalised lender Hypo Alpe Adria, saying she was confident she could instead get more time from the European Commission for an orderly wind-down.

In a parliamentary debate, she rebuffed Greens party deputy leader Werner Kogler's appeal to set up a bad bank that could absorb toxic assets from the bank and foster a sale of its operating units, as Brussels has demanded by the end of 2013.

"What Mr Kogler wants means carving all the loss-making parts out of the bank and saddling taxpayers with this. This is maximising losses for taxpayers. It is also not the most creative solution," Fekter said.

Fekter has resisted mounting pressure to agree to a bad bank, which would hit state finances before national elections due by late September. (Reporting by Michael Shields; Editing by Toby Chopra)

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