Chief Correspondent, Vienna, Vienna
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Aug 7, 2013

Bank Austria seeks more capital for east Europe lending

VIENNA, Aug 7 (Reuters) – UniCredit unit Bank
Austria aims to raise more capital this year to fuel selective
lending in central and eastern Europe (CEE) now that the
region’s boom times are over, the company said on Wednesday.

Bank Austria said CEE would still grow faster than western
Europe and the industry there had shown signs of improvement.

Jul 11, 2013

EU court backs Austria in Amazon row over levies

VIENNA (Reuters) – EU countries can under some circumstances collect a levy on blank recording media as a tool to ensure artists get fair rewards for their work, a levy that Inc had fought, the European Court of Justice ruled on Thursday.

The case arose from an Austrian copyright collection agency’s attempt to bill Amazon nearly 1.9 million euros ($2.4 million) for blank media such as cassette tapes, CDs, memory cards and MP3 players sold in Austria in the first half of 2004.

Jul 8, 2013

Austrian banks need up to 8 bln euros of capital-cenbank

VIENNA, July 8 (Reuters) – Austrian banks need to find as
much as 8 billion euros ($10.3 billion) in fresh capital to meet
minimum international standards by 2022, the country’s central
bank said on Monday.

The sector’s biggest challenge is replacing 5.15 billion
euros in state aid that lenders got as the global financial
crisis raged but which will no longer count as core capital from
2017, it said in its latest financial stability report.

Jul 3, 2013

Bolivia angered by search of president’s plane, no sign of Snowden

VIENNA (Reuters) – Bolivia accused Austria of an act of aggression by searching President Evo Morales’ plane on Wednesday and blamed Washington for its forced landing in Vienna over suspicions that former U.S. spy agency contractor Edward Snowden was on board.

Morales’ plane was stranded at Vienna airport for several hours after Portugal and France abruptly canceled air permits for it to fly through their airspace, but eventually resumed its flight home form an energy meeting in Moscow.

Jul 2, 2013

CEO quits ailing Austrian bank Hypo Alpe Adria

VIENNA, July 2 (Reuters) – The chief executive of
nationalised Austrian bank Hypo Alpe Adria resigned
on Tuesday, saying that political wrangling over whether the
lender was worth keeping afloat had made his job impossible.

Gottwald Kranebitter became the second top Hypo official to
leave within a month in a saga that highlights Austrian banks’
exposure to central and eastern Europe (CEE) and taxpayers’
reluctance to keep footing the bill when things go wrong.

Jul 1, 2013

Erste launches capital increase to help repay state aid

VIENNA, July 1 (Reuters) – Austria’s Erste Group Bank
launched on Monday a share sale to raise around 660
million euros ($858 million) to help repay state aid.

Central and eastern Europe’s third-biggest lender announced
plans for the capital increase last week, saying it would use
the money to help repay 1.76 billion euros in non-voting
participation capital it raised in 2009 to help it weather the
financial crisis.

Jun 26, 2013

Political will and big spending put Austrians to work

VIENNA, June 26 (Reuters) – Sebastian Liedl is 17, and in
half a year will be a fully qualified employee at the Austrian
steel group Voestalpine, where he can look forward to
a starting monthly wage of about 2,000 euros ($2,600).

Unlike his contemporaries in Greece, Spain or Portugal,
Liedl has never feared unemployment. He always knew he wanted to
follow in the footsteps of his father and grandfather at Voest,
where he is part of an extensive apprenticeship programme.

Jun 24, 2013

Erste cash call U-turn, profit forecast cut roils shares

VIENNA (Reuters) – Erste Group Bank (ERST.VI: Quote, Profile, Research, Stock Buzz) on Monday reversed guidance from just two months ago, saying it plans a cash call to help repay emergency state funding and that operating profit will fall this year rather than hold steady.

Its stock fell almost 10 percent, roughly matching what analysts say will be the extent of earnings dilution from the new shares.

Jun 24, 2013

Erste to issue shares to repay state aid, cuts outlook

VIENNA, June 24 (Reuters) – Erste Group Bank will
raise about 660 million euros ($867 million) in equity and repay
state aid in the third quarter, it said on Monday, forecasting
operating profit would fall as much as 5 percent in 2013 rather
than holding steady.

Central and eastern Europe’s No. 3 lender said it would
repay 1.76 billion euros in non-voting participation capital it
got when the financial crisis began. Two-thirds came from
Austria and the rest from private investors.

Jun 19, 2013

Austria’s Alpine Bau goes bust, Spain’s FCC takes hit

VIENNA/MADRID, June 19 (Reuters) – Alpine Bau GmbH,
Austria’s second-biggest construction firm, filed for insolvency
on Wednesday with liabilities of up to 2.6 billion euros ($3.5
billion) in what could become the country’s biggest corporate
collapse since World War Two.

The move deals Spanish parent FCC a hit of 289
million euros after tax, affects lenders including Bank Austria
and Erste Group, saddles Austrian taxpayers
with as yet undetermined losses from debt guarantees, and could
lead to thousands of job losses.

    • About Michael

      "Mike has worked for Reuters for two decades and reported from more than a dozen countries on business and general news. His beats have included covering the European automotive industry, business news from Switzerland, German defense and security policy, and Hungary's transition to a market democracy after the collapse of communism in eastern Europe"
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