VIENNA, March 26 (Reuters) - UniCredit unit Bank Austria has kept some exposure to Kazakhstan via loan guarantees at its ATF unit that the bank is selling to a local entrepreneur, according to Bank Austria’s 2012 annual report.
Bank Austria, the biggest lender in emerging European markets, will guarantee against loan losses of up to $631 million for two years after the sale closes, the report said. In return, ATF will pay a premium of 2 percent.
The accord stems from a guarantee agreement struck in 2009 covering a loan portfolio worth $2.8 billion.
Italian parent UniCredit said this month it was selling ATF for around book value of $550 million. UniCredit bought ATF for $2.1 billion in 2007 at the height of the credit boom.
Austrian paper WirtschaftsBlatt first reported on the guarantees on Tuesday. (Reporting by Michael Shields; Editing by Tom Pfeiffer)