June 15, 2015 / 6:21 PM / 4 years ago

German banks file suit against Austria's Heta

FRANKFURT, June 15 (Reuters) - A group of German public sector banks are suing Austrian “bad bank” Heta Asset Management for a total 218 million euros ($245.36 million), a spokesman for NordLB said on Monday, confirming an earlier report by Handelsblatt daily.

The banks - HSH, Helaba and NordLB as well as property lender Berlin Hyp - had subscribed to a Heta bond that came due on March 20, he said.

Using new EU rules aimed at protecting taxpayers’ money, regulators in March took control of Heta and imposed a debt moratorium until May 2016 after an audit found a capital hole of up to 7.6 billion euros in its balance sheet.

The moratorium has prompted complaints by more than 200 creditors who were left in limbo and facing losses, but Austria’s FMA financial watchdog has defended the country’s handling of Heta creditors.

$1 = 0.8885 euros Reporting by Andreas Kroener; Writing by Maria Sheahan, editing by David Evans

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