Law for Hypo Bank adopted

The Austrian parliament has adopted a special law to transform Hypo Alpe Adria Bank. The law was adopted thanks to the votes of the ruling coalition which is made up of the Social Democratic Party (SPO) and People's Party (OVP).

A total of 96 MPs voted for the law, while 76 were against.

Among those who were in favor of this law was also Maria Fekter (OVP), the former finance minister, who criticized it until a few days ago.

Lex specialis stipulates that this troubled bank must be turned into a business organization that should degrade its troubled parts in the best possible manner.

The company which should start operations in November will operate as part of the Finance Ministry.

Special Hypo SEE Holding will be established for the network of Hypo banks in the Balkans, which should be sold by mid-2015 to meet the requests of the European Commission.

According to Finance Minister Michael Spindelegger, seven companies have so far expressed interest in the Hypo subsidiary in the Balkans. There will also be a special holding for the deconstruction of Hypo Bank Italy.

Spindelegger explained that Lex Hypo brought three benefits - EUR 1.69 billion in savings for taxpayers, prevention of the bankruptcy of the Carinthia Province that stood behind the Bank, and the maintenance of the lowest interest rates.