is a leading bank on the Croatian market, where it has operated since 1996, offering financial products and services to companies, public institutions and citizens. On 30th December 2009, the Republic of Austria became the sole 100% shareholder in Hypo Alpe-Adria-Bank International AG. The Group employs around 8000 people and provides services to over 1.2 million clients on all Group markets. Hypo Group's markets today comprise 12 countries: Austria, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany, Hungary, Bulgaria, Macedonia and Ukraine. The Group arrived to the Croatian market in 1994. From there, the Group expanded its operations the first time in 1988, opening a leasing subsidiary in Udine. The headquarters of Hypo Group is in Klagenfurt, Austria. The Group enjoys a tradition in financial business over 110 years long, its strategic sectors being banking and leasing. By taking this approach, they massively limited the scope for negotiations and agreed to nationalise the bank under high time pressure in mid-December 2009.Hypo Group Alpe Adria (Hypo Alpe-Adria-Bank International AG) is a powerful financial group with operations in the extended Alps-to-Adriatic region. Furthermore, it was already at end-August 2009 that the representatives of the Republic of Austria had ruled out an insolvency scenario vis-à-vis the BayernLB. The Land liabilities opened up a growth potential for the bank, which could not have been unlocked merely by its own refinancing activities.Īfter the unplanned need for value adjustment had become public for the first half of 2009 and after the release of an in-depth analysis of the loan portfolio of the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG, which had been conducted by an accounting company and whose results had been presented in November 2009, the capital requirements for the necessary reorganisation were estimated at EUR 2.1 billion.ĭespite the fact that the gradual deterioration of the economic situation of the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG had become apparent for the Financial Market Holding Company of the Republic of Austria (FIMBAG) and the Federal Ministry of Finance (BMF) from April 2009 on, neither the FIMBAG nor the BMF had made use of their inspection rights and their rights to conduct financial and tax audits in order to collect more comprehensive information on the economic situation of the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG for the purpose of a due diligence audit. The liabilities of the Land of Carinthia contributed significantly to the fact that the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG was assessed as a systemically relevant bank for the Austrian financial market. The Oesterreichische Nationalbank (central bank of the Republic of Austria) calculated the possible costs for the Republic of Austria and for other Austrian financial market participants under consideration of the liabilities of the Land of Carinthia for the benefit of the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG at some EUR 27 billion. An insolvency of the bank implied considerable factors of uncertainty.

On 14 December 2009 the Republic of Austria purchased 100 % of the shares in the HYPO ALPE-ADRIA-BANK INTERNATIONAL AG for EUR 4 in order to ensure a recapitalisation of the bank and to avoid insolvency. HYPO ALPE-ADRIA-BANK INTERNATIONAL AG: Verstaatlichung HYPO ALPE-ADRIA-BANK INTERNATIONAL AG - Nationalisation

Hipo alpe adria