Sale of Hypo bank in the Balkans “under inspection “of EC

The European Commission will carefully study the Austrian plan for sale of the branch office of nationalized bank Hypo Alpe Adria in SEE to American fund Advent so that it would be sure it has nothing to do with the “hidden help, minister of finance, Hans Joerg Schelling, said on Tuesday, November, 18, 2014.

- We still have to check whether transaction can be interpreted as a hidden measure of state support. EU is very strict in that sense - Schelling said for journalists before the meeting on Tuesday.

Hypo has already received EUR 5,5 billion in state support and Schelling said he cannot say how much funds more will might be needed. He also added an agreement on sale price was not signed.

Hypo mentioned that Advent International offered essential guarantees so the refunding amount of EUR 2,2 billion which stays in the Balkan network will be paid. The American Fund for risky capital joined forces with EBRD in the offer for the acquisition of Hypo’s branch offices, Reuters reminds.

German bank, BayernLB, former owner of Hypoa, should also approve the sale, Schelling reminded. BayernLB submitted a complaint to the Austrian constitutional court asking to annul the law where they were asked to take over EUR 800 m of the costs for shutting down Hypo.