Nationalised Austrian lender Kommunalkredit could need as much as 1 billion euros ($1.3 billion) as it tries to address its exposure to Greece, the country's finance minister told Austrian radio on Saturday. Austria has already said Kommunalkredit will need help this year and Maria Fekter said on Saturday provisions were in place for 600 million euros, Maria Fekter.
"If Greece does become formally classed as insolvent... then the bank will need at lot of money all at once," Maria Fekter said, putting the amount at around 1 billion euros. Austria has already agreed to take a stake of up to 49 percent in ailing lender Volksbanken in a second bailout for the bank that will cost the state more than 1 billion euros in writedowns, fresh capital and guarantees. Kommunalkredit and Hypo Alpe Adria were nationalised in 2008 and 2009. Fekter also said on Saturday Hypo Alpe Adria might need more state help if it is not able to get rid of its risky assets, and instead has to keep them in its portfolio.
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