VIENNA (Reuters) – The European Central Bank does not intend to cut interest rates further “for the foreseeable time” after pushing them to record lows on Thursday, ECB Governing Council member Ewald Nowotny said on Friday.
He reiterated to a news conference that the ECB did not have an exchange rate target for the euro and had no intention to intervene to cap its strength, which he described as evidence that the euro zone debt crisis was now over.
VIENNA, June 6 (Reuters) – Austria will enter uncharted
territory for bond markets next week when it unveils legislation
designed to force some subordinated creditors of Hypo Alpe Adria
to help pay for winding down the stricken
It is a plan entirely in line with the latest thinking in
Europe on how to handle banks in crisis: make their owners and
investors – not taxpayers – pay to clean up the mess. “Bailing
in” junior bank creditors is also nothing new, as seen elsewhere
in Europe, including Ireland and the Netherlands.
VIENNA (Reuters) – Austria’s Raiffeisen Bank International will this week repay the 1.75 billion euros ($2.4 billion) of state aid it got in the financial crisis, joining the ranks of lenders that have weaned themselves off government help by boosting their balance sheets.
The repayment of the non-voting capital will make Raiffeisen Bank International (RBI) the third Austrian lender – after Erste Group and BAWAG PSK – to hand back taxpayer money after tapping their owners for more equity.
VIENNA, June 4 (Reuters) – Raiffeisen Bank International
will repay this week the 1.75 billion euros ($2.4
billion) in non-voting capital it raised from Austria in 2009 to
help weather the financial crisis, Chief Executive Karl Sevelda
“Early today … we got authorisation from the Financial
Market Authority (FMA) and on June 6 we will repay to Austria
the entire state share of the participation capital worth 1.75
billion euros,” he said on Wednesday.
VIENNA, May 24 (Reuters) – Austria will propose within weeks
draft legislation to make Hypo Alpe Adria’s subordinated
creditors help pay for winding down the nationalised bank
despite ratings agency Moody’s warning about the impact of
imposing haircuts on bondholders.
The legislation will focus on “bailing in” holders of nearly
900 million euros ($1.23 billion) of debt guaranteed by Hypo’s
home province of Carinthia, not the 1 billion euros of debt with
federal guarantees, a finance ministry spokesman said on
VIENNA, May 22 (Reuters) – Raiffeisen Bank International
reported first-quarter profit that beat market
expectations, saying its Russian business was “relatively
normal” and it could soon pay back nearly 2 billion euros ($2.73
billion) in state aid.
Shares in the Austrian lender jumped more than 5 percent in
early trade on Thursday, as rising net interest income provided
a positive surprise, while risk provisions rose less than
expected despite a hit from Ukraine.
VIENNA (Reuters) – Two senior Austrian educators will step down over a scandal in which a test administered to school-leavers featured an essay by a Nazi apologist, the latest in a series of missteps in awarding high school diplomas.
Following a high-profile data leak and a failure to communicate new grading scales, the final straw came when this year’s German test included a 1947 text by German author Manfred Hausmann, who had worked for Nazi propaganda magazine Das Reich.
VIENNA, May 12 (Reuters) – An interest rate cut alone will
not be enough to deal with persistently low inflation in the
euro zone, ECB policymaker Ewald Nowotny said on Monday as the
central bank gets ready to add more stimulus as soon as June.
European Central Bank President Mario Draghi said last week
the ECB is prepared to take action next month to boost the euro
zone economy if its updated staff inflation forecasts merit it.
VIENNA, May 11 (Reuters) – Conchita Wurst came home to a
heroine’s welcome in Austria on Sunday after the bearded drag
queen won the Eurovision Song Contest in what she called a
victory over the forces of intolerance, including Russian leader
Sporting high heels, a tight dress, butterfly eyelashes and
a full beard, Wurst – whose birth name is Tom Neuwirth – swept
to victory with her “Rise Like a Phoenix” ballad before a global
TV audience of about 180 million people in 45 countries.
VIENNA, April 16 (Reuters) – Hypo Alpe Adria, the state bank
whose woes will swell Austria’s debt and deficits this year, is
morphing into a national bogeyman for a country fed up with the
lender’s chronic need for support and policymakers’ failure to
resolve the issue.
More than four years after the state’s emergency takeover,
Hypo has moved beyond being Austria’s worst post-war financial
debacle to become a lightning rod for grass-roots criticism of
banks and the government ahead of European elections next month.