Crisis around Hypo Vorarlberg: Sales or Future in Land ownership?

Crisis around Hypo Vorarlberg: Sales or Future in Land ownership?

Vienna, Österreich - The future of Hypo Vorarlberg is the focus of intensive political discussions. The debate about the whereabouts or the possible sale of bank participation is heated by millions of losses caused by loans to the Signa Group. Around 77 percent of Hypo Vorarlberg are currently owned by the State of Vorarlberg, and various scenarios for the future orientation of the bank are being examined. vienna.at reports that neos club chairman Gerfried Thür is questioned whether the country is the suitable owner of the bank, and instead suggests a foundation, its income in education projects could be invested.

The focus of the discussion is also the report of the State Technology Court, which criticizes the Hypo Vorarlberg to the insolvent Signa Group because of its loans. The press reports that a 47-million euro loan is particularly targeted. The report certifies the bank too much trust in lending and asks the country to determine a clear strategy for the Hypo Vorarlberg.

The Hypo Vorarlberg has had a profitable business relationship with the Signa Group since 2010, but the risks and defects in lending policy are now criticized. At the end of 2023, seven loans with a total volume of almost 200 million euros were still open, and 131 million euros of them fell into failure. Hypo CEO Michel Haller assured that all financing was customary in the market. Nevertheless, the Court of Auditors recommends checking the loan contracts and a more transparent lending policy. ORF Vorarlberg reports that the bank will continue the measures already initiated to improve its risk analyzes and credit quality.