* H1 net loss 1.67 bln euros, including 1.44 bln provisions
* Last 700 mln euro capital injection now not needed
* Balance sheet 25.2 bln euros vs 26.2 bln at end 2013
(Adds Hypo comment that Hypo will not now need final capital
injection of 700 million euros)
By Georgina Prodhan and Angelika Gruber
ALPBACH, Austria, Aug 27 Nationalised Austrian
lender Hypo Alpe Adria will not need any more state
aid before being broken up later this year, with most of its
assets to be put into a "bad bank."
The bank, which has already received around 5.5 billion
euros in state aid since 2008, will not now need another 700
million euros (924 million US dollar) in state aid as originally
agreed, a Hypo spokesman said on Wednesday.
He said this followed the introduction of a new law in July
which imposed losses on some creditors.
Hypo was nationalised in 2009 after a decade of breakneck
expansion in the Balkans. It shrank its balance sheet by a
billion euros in the first half of 2014 to 25.2 billion euros
from a high of 43.3 billion at the end of 2008.
About 18 billion euros worth of toxic assets are planned to
be hived off into a "bad bank" later this year, and Hypo's prime
asset, its Balkan banking network, is up for sale and likely to
fetch a maximum of 500 million euros.
The aid Austria has pumped into the bank was set to push the
country's state deficit to nearly 3 percent of gross domestic
product and state debt to around 80 percent of GDP this year.
Hypo posted a net loss of 1.67 billion euros on Wednesday
for the first half of the year, mainly due to provisions it had
to make in preparation for the sale of its Balkan banking
network and the winding down of its Italian business.
Provisions for the Balkan and Italian businesses in the
first half of 2014 were 1.44 billion euros.
(1 US dollar = 0.7579 euro)
(Additional reporting by Michael Shields; Editing by Mark
Potter and Jane Merriman)