VIENNA, April 9 Nationalised Austrian bank Hypo
Alpe Adria got an extra 750 million euros ($1.03
billion) of state aid on Wednesday when its sole owner - the
Austrian government - approved a capital increase at a
shareholder meeting, Hypo said.
Hypo had announced last week it would get the money as a
first tranche of emergency aid to cover its capital needs and
let it finalise its 2013 accounts. It also provides a cushion
for the first months of this year.
Hypo, nationalised in 2009, said last month it would need a
total of 1.43 billion more euros to cope with writedowns and
maintain regulatory minimum capital levels until it transfers
billions of euros worth of assets to a "bad bank" in September.
Hypo's recurring capital shortfall prompted the European
Central Bank last week to suspend the Austrian bank's access to
cheap ECB funding.
Even before the latest support Hypo had got 4.8 billion
euros in state aid since a global financial crisis broke out in
2008, exposing that it had overreached during breakneck
expansion at home and in the Balkans that pushed it to the brink
It is now trying to sell off its Balkan banking network and
plans to put most of its remaining assets - around 18 billion
euros' worth - into the bad bank to be wound down over years, a
step that will inflate state debt and deficits this year.
($1 = 0.7249 Euros)
(Reporting by Michael Shields; Editing by Elaine Hardcastle)