July 2 (Bloomberg) -- Austrian banks may require more state aid to boost their capital if eastern Europe’s economies fail to stabilize, the Organization for Economic Cooperation and Development said.

“Further financial turmoil in one or more central and eastern European countries cannot be ruled out, calling for additional measures on the part of Austrian authorities,” the Paris-based OECD said in a report today. “Prompt implementation would be important, especially regarding capital injections.”

Austria’s banks have made 201 billion euros ($283 billion) of loans in central and eastern Europe, where defaults are rising because of the global financial crisis and an economic slump. The warning on capital levels is the second for Austrian banks in less than a week after the International Monetary Fund said on June 30 that the nation’s banks may need to increase their “capital buffers.”

The government has set up a 15 billion-euro bank-aid fund and a 75 billion-euro clearinghouse to boost banks’ liquidity. Austria’s National Bank is scheduled to release the results of stress-test scenarios it ran for the banking system on July 6.

Raiffeisen Zentralbank Oesterreich AG Chief Executive Officer Walter Rothensteiner said on June 30 that he doesn’t expect Austria’s third-biggest lender to ask for additional government funds.

The OECD expects Austria’s economy to contract 4.4 percent in 2009 and to stagnate in 2010, according to today’s report.

To contact the reporters on this story: Jonathan Tirone in Vienna at jtirone@bloomberg.net.

Last Updated: July 2, 2009 05:00 EDT