Austrian Province Asks for Federal Help as Insolvency Looms
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Carinthia, the Austrian province on the hook for more than 10 billion euros ($10.7 billion) of Heta Asset Resolution AG’s debt, asked the federal government for credit and started preparations for potential insolvency.
The southern province of 556,000 is asking for continued funding through the Austrian Treasury after a credit-rating cut by Moody’s Investors Service closed market access, the Carinthian government said in a statement on Tuesday. A group of government officials and advisers will seek ways to keep provincial services functioning, according to the statement.