VIENNA Oct 11 All 9.3 billion euros ($10.42
billion) in potential costs linked to the buyback of Heta Asset
Resolution's bonds by the province of Carinthia are
covered by a new borrowing forecast for 2016, Austria's Federal
Financing Agency said on Tuesday.
The agency said Austria would borrow roughly 3 billion euros
more this year than originally planned, an increase that is
aimed at lending the province of Carinthia the money to buy
bonds of "bad bank" Heta.
Had it not been for the Heta buyback, Austria would have
lowered its borrowing forecast for the year to 24 billion to 27
billion euros for the year because of a large number of put
options that were not exercised, the head of the agency, Markus
Stix, said in a telephone interview.
($1 = 0.8928 euros)
(Reporting by Francois Murphy; Editing by Shadia Nasralla)