* Access to cheap ECB loans suspended until further notice
* Senior unsecured bonds cannot be used as collateral at ECB
* Sees no negative effect on liquidity position (Adds details)
VIENNA, April 4 (Reuters) - Austrian nationalised bank Hypo Alpe Adria International has had its access to cheap credit from the European Central Bank suspended until further notice, it said on Friday.
The loss-making bank said its access to Eurosystem monetary policy credit instruments and the ECB’s marginal lending facility had been suspended because of Hypo’s recurring shortfall in regulatory capital.
It added that the measure did not affect its subsidiaries outside Austria, which it is trying to sell.
Hypo said its own liquidity position would not be affected as it did not currently use any such ECB refinancing facilities but said its senior unsecured bonds could no longer be used as collateral at the ECB until further notice.
Hypo, which was nationalised in 2009 to avoid a failure that would have sent shockwaves through the Balkans - where it had expanded at breakneck speed - plans to transfer 18 billion euros ($25 billion) of toxic assets into a “bad bank” in September.
It has already had 4.8 billion euros in state aid and expects to receive another 750 million euros on April 9 to enable it to close its 2013 accounts.
Hypo has sold off its Austrian banking operations and is trying to sell its Balkan banking network. (Reporting by Georgina Prodhan. Editing by Jane Merriman and Janet Lawrence)