E.U.: Commission approves restructuring aid for Austrian bank Hypo Tirol

The European Commission has concluded that a planned capital injection of €220 million for the Austrian bank Hypo Tirol Bank AG, is a regional bank which is fully owned by the Austrian Federal State of Tirol, was in line with EU state aid rules. In particular, the Commission found that the bank’s restructuring plan ensures the bank’s viability without state support and provides for a sufficient own contribution to the restructuring costs while minimizing distortions of competition. Hypo Tirol was conducting business in the Austrian Federal State of Tirol, in Vienna, Italy (Alto Adige/Südtirol, Verona, Trentino), Germany and Switzerland. In recent years, the bank suffered problems in particular in Germany and Italy due to significant write-off. According to its restructuring plan, the bank will in the future focus on its core market Tirol and withdraw from Germany and Italy (except Südtirol/Alto Adige).

Full Content: EC News

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