VIENNA May 14 Austria is on track to strike a
deal with European Competition Commissioner Joaquin Almunia on
reorganising Hypo Alpe Adria that can avoid a forced
wind-down of the nationalised lender, the Austrian National Bank
said on Tuesday.
"I think that the Austrian government is well on the way,"
OeNB Director Andreas Ittner told reporters on the sidelines of
a news conference on economic data, confirming that a quick Hypo
shutdown could cost up to 16 billion euros ($21 billion)in the
Brussels and Vienna are at loggerheads over the pace of
overhauling Hypo, with the Commission keen for its operating
assets to be sold by the end of the year but the Austrians
fearful rushed sales could hurt state finances ahead of
elections due by late September.
($1 = 0.7703 euros)
(Reporting by Angelika Gruber, Writing by Michael Shields,
editing by Georgina Prodhan)