VIENNA Feb 10 Commercial banks will not support
a "bad bank" to absorb toxic assets from ailing nationalised
lender Hypo Alpe Adria, Austrian Finance Minister
Michael Spindelegger said on Monday.
"It became clear that this bank involvement and
privatisation model de facto is not possible," he told reporters
after a meeting on whether the government could get through its
preferred option for handling the lender. The state would now
review other options, including a state-run bad bank, and had
not ruled out an insolvency, he said.
Austrian central bank Governor Ewald Nowotny said that a
state-run bad bank for Hypo should not increase Austrian debt
spreads. He renewed his opposition to letting Hypo go bust.
(Reporting by Michael Shields; writing by Arno Schuetze;
Editing by Anthony Barker)