Austria Tells Heta Bondholders to Be Rational and Accept Losses

  • Creditors face losses on 11 billion euros of state bank debt
  • Bond offer higher than expected, Austria says won't sweeten it

Austria told creditors of bad bank Heta Asset Resolution AG they should be “rational” and accept the “excellent offer” to take about 3.2 billion euros ($3.5 billion) of losses rather than gamble on the insolvency of the southern Carinthia province. Creditors were unimpressed.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.