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
"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)