VIENNA, June 19 UniCredit unit Bank Austria
and Erste Group Bank have already built
provisions for debt problems at construction group Alpine, but
it was too early to say what hit they might ultimately take, the
lenders said on Wednesday.
Alpine Bau GmbH, Austria's second-biggest construction firm,
filed for insolvency with liabilities of up to 2.6 billion euros
($3.5 billion) in what could become the country's biggest
corporate collapse since World War Two.
"In consultations with auditors, Bank Austria made adequate
risk privisions in the Alpine matter in the fourth quarter of
2012 that include even a failure of (debt) restructuring
efforts," the bank said in a statement.
"The final loss will be largely dependent on any possible
use of guarantees and is thus not yet been precisely
A spokesman for Erste said it was in the same position. "We
are sufficiently covered by the risk provisions that we built up
in the fourth quarter," he said.
($1 = 0.7467 euros)
(Reporting by Michael Shields; Editing by David Holmes)