VIENNA May 2 Austria's Financial Market
Authority, which is overseeing the wind-down of "bad bank" Heta
Asset Resolution, has increased its forecast of how
much will be earned from the sale of Heta's assets to roughly
8.6 billion euros ($9.39 billion).
The increase, from a previous estimate of 6.0 billion euros,
was largely due to the better-than-expected proceeds from the
sale of Heta's assets so far, the FMA said, adding that as of
last month Heta had cash reserves of 8.1 billion euros.
The overwhelming majority of Heta's creditors sold their
bonds last year to Carinthia, the southern Austrian province
that was home to failed lender Hypo Alpe Adria and which
guaranteed its bonds to the tune of roughly 11 billion euros.
Heta was formed from the remnants of Hypo Alpe Adria and the
wind-down of its assets is due to be completed by 2023.
Because of the better-than-expected proceeds of the
wind-down so far, the FMA said it was reducing the size of the
haircut formally placed on Heta's senior bonds, the bulk of the
paper, to 35.6 percent from 53.98 percent.
The Austrian government lent Carinthia the money with which
it bought back Heta's bonds.
($1 = 0.9163 euros)
(Reporting by Francois Murphy; Editing by Shadia Nasralla)