Hypo Bank requires additional funds

And while Social Democrats of Austria (SPO) and People's Party of Austria (OVP) negotiate a new coalition government that will face the challenge of plugging a budget hole of few billion euros, Hypo Alpe Adria Bank requires additional funds from the state.

Only two months after the state injected EUR 700 million in Hypo Bank to fill the holes in its semi-annual balance sheet, the need for fresh capital reemerged. Additional funds will be necessary as early as this month given that the bank has already warned it is threatened by the lack of capital. Experts estimate that the bank will need minimum EUR 1 billion in fresh capital from taxpayers for the end of the year, while insiders expect the bank to require between 1 and 1.3 billion euros by the year's end.

So far, Austria has injected over EUR 3.8 billion in stumbling Hypo Alpe Adria Bank to prevent its crash.