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VIENNA, Oct 11 (Reuters) - 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)