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Austria's Austrian Hypo says capital requirement cut
January 31, 2013 / 11:42 AM / 5 years ago

Austria's Austrian Hypo says capital requirement cut

VIENNA, Jan 31 (Reuters) - Stricken Austrian bank Hypo Alpe Adria said the country’s regulator for financial markets had lowered the capital requirements for the bank and given it more time to come up with the 609.9 million euros ($827.6 million) needed.

Hypo, which was nationalised in 2009, said the regulator reduced its capital ratio target to 12.4 percent from 12.67 percent, equalling some 90 million euros less than it previously needed to have.

It had until Dec. 31 of this year to fulfill the requirements, nine months more than it had been given previously, Hypo said on Thursday.

The bank, which is rolling back an ambitious expansion into southeastern Europe in an attempt to shrink itself back to health, issued a 1 billion euro bond at the end of last year, guaranteed by the Republic of Austria.

The state - the sole buyer of the bond - has injected a total of 1.5 billion euros in emergency capital into the bank, which was provisionally approved by European Union competition regulators in December. ($1 = 0.7370 euros) (Reporting by Peter Dinkloh and Georgina Prodhan)

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