April 3, 2014 / 4:57 PM / 4 years ago

UPDATE 1-Austria's Hypo agrees first tranche of emergency aid

* EGM called to approve 750 mln eur state aid on April 9

* Funds are first tranche of 1.43 bln bank says it needs

* Bad bank to wind down toxic assets to be set up in Sept (Adds comments from Hypo and Finance Ministry, background)

VIENNA, April 3 (Reuters) - Nationalised Austrian bank Hypo Alpe Adria has agreed a first tranche of emergency state aid to cover its capital needs and enable it to finalise its 2013 accounts, Hypo and the Finance Ministry said on Thursday.

Hypo said the government, its sole shareholder, would approve an initial 750 million euros ($1.03 billion) at an extraordinary shareholder meeting on April 9.

Hypo said last month it would need a total of 1.43 billion euros to cope with writedowns and maintain regulatory minimum capital levels until it transfers billions of euros worth of assets to a “bad bank” in September.

A Hypo spokesman said the initial shot of 750 million euros would allow it to close its 2013 accounts and give it a cushion for the first months of 2014.

Hypo has already received 4.8 billion euros in state aid since a global financial crisis broke out in 2008, exposing the fact that it had overreached itself during a period of breakneck expansion in the Balkans.

It is now trying to sell off its Balkan banking network and plans to put most of its remaining assets - around 18 billion euros’ worth - into the bad bank to be wound down.

$1 = 0.7291 Euros Reporting by Georgina Prodhan; Editing by Jane Merriman and Elaine Hardcastle

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