FRANKFURT Nov 10 Partly nationalised Austrian
lender Volksbanken AG (OeVAG) is expecting to skip
coupon payments for the next two years on state aid it received
in the financial crisis.
The bank said in a statement late on Friday that according
to local accounting rules it will post a 2012 net loss of less
than 100 million euros.
"Due to the expected difficult economic environment and the
resulting deductions on the run-down portfolio, interest
payments on supplementary capital should not be expected for the
years 2013 and 2014," it added.
Volksbanken was granted 1.25 billion euros in capital
injections, 3 billion euros in liquidity guarantees and 100
million euros in asset guarantees as part of its bailout
following adverse investments in eastern Europe, losses on Greek
debt and other bad loans.
In April, Austria took a 43 percent stake in the lender as
part of a rescue that cost the state more than 1 billion euros
in writedowns on previous aid, fresh capital and guarantees.
The Austrian government said last month it will run bigger
public deficits than hoped this year and in 2013 as the economy
performs less well than expected and aid for its struggling
banks eats into state finances.
Separately, Nationalised peer Hypo Alpe Adria is
readying new state-backed hybrid bonds to shore up its balance
sheet, sources close to the situation said earlier this month.
(Reporting by Arno Schuetze; Editing by Toby Chopra)