Kommunalkredit May Get 1 Billion Euros in Austrian Aid
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KA Finanz AG, the “bad bank” of nationalized Austrian lender Kommunalkredit Austria AG, may get an injection of 1 billion euros ($1.3 billion) of government funds should credit default swaps kick in because of a Greek default, according to Finance Minister Maria Fekter.
Should Greece be considered in default, CDS would be triggered and KA Finanz would need about 1 billion euros, Fekter said in an interview in Austrian state radio ORF today, adding that the government has made “provisions for 600 million euros, the remaining 400 million euros are to be seen as a risk.”