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Volksbanken to Repay EU400 Mln to State in 2011, WiBlatt Reports

Oesterreichische Volksbanken AG, the Austrian lender that received 1 billion euros ($1.3 billion) of state aid in 2009, plans to repay 400 million euros to the Austrian government next year, Wirtschaftsblatt reported, without saying where it got the information.

Volksbanken’s supervisory board on Dec. 16 is due to sign off a capital measure that will allow the repayment, the Vienna-based newspaper said. The bank is requested to repay 300 million euros to the government in 2011, the paper said. Should it fail to make the payment, Austria has the right to swap debt for equity in Volksbanken, according to the report.

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