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Vienna, 14 October 2011 : Federal Ministry of Finance: Austria has all necessary instruments to ensure financial stability Proprietors now required to act – Government is ready to support VBAG (Volksbank AG) with further measures if needed
The Federal Ministry of Finance (BMF) notes that, in view of the
decline in market climate over the past few weeks, results for the VBAG
Group will be significantly out of line with the results forecast. The
BMF now perceives the need for both the management and proprietors of
VBAG to present a credible plan for sustained strengthening of the
institution. Restructuring of the Joint Liability Scheme (Haftungsverbund)
along the lines of the Dutch Rabobank model is welcomed in this regard.
The BMF assumes that implementation will take place swiftly. Within the
framework of its statutory and contractual options, Austria will take
every opportunity to enable swift solutions.
Notwithstanding this, Austria still has to hand the instruments
of the Financial Market Stability Act in order to secure financial
stability. This would make it possible, if needed, to immediately take
recapitalization measures, for instance through assuming liabilities.
For such measures, the Financial Market Stability Act provides a
total facility of 15 billion Euro, of which about 6 million Euro is
currently available for use.
