Austria: Bank sends new offer for $3B in EU state aid, but CEO resigns

Austria has filed a renewed proposal to have nearly $3 billion in state aid approved by the European Union for Hypo Alpe-Adria-Bank International AG, but in the story’s latest development, Hypo Alpe-Adria’s CEO announced his resignation on Tuesday. According to a statement from the nation’s Finance Ministry, the lender has agreed to finalize the divesture of its Austrian unit and initiate the sale of the firm’s largest arm over the next two years, which would see the divesture of its banks in the former Yugoslavia. Further, the bank has agreed to not do business in Italy. Those agreements were made in hopes of earning final EU approval for the funds after a March request for state aid was rejected. The Commission said the March offer did not justify the funds requested and even threatened to require the bank to repay aid received since 2008. Just one day after making the aid request, CEO Gottwald Kranebitter announced plans to step down from his post, though he gave no reason for his departure.

Full Content: Bloomberg

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