Austrian government prepares new financial injection for Hypo Bank

The Austrian government has set aside funds for another capital injection for the troubled Hypo Alpe-Adria-Bank AG that was nationalized to avoid crash.

Austrian Finance Minister Michael Spindelegger said Wednesday that Hypo Bank quickly needed a new aid, adding that the Bank's competent auditors pointed to the current need for capital.

Spindelegger did not reveal any details on how much aid the Bank would need.

As soon as necessary data are provided, Chancellor Werner Faymann and Spindelegger can decide on further cash injection, given that they obtained appropriate authorization from other members of the Government yesterday.

The National Bank of Austria (OeNB) previously underlined the need for urgent resolving of the issue of new aid for Hypo Bank, so that Spindelegger doesn't have much time to make that decision.

The new aid will make it possible for the Bank to meet the minum capital requirement. Otherwise, it will be facing bankruptcy.

Experts warn that bankruptcy would primarily affect the value of its subsidiaries in southeast Europe, which is currently at half a billion euro, the media in Austria have reported.