EU OK'd closing of Hypo Group Alpe AdriaStaff writer ▼ | Wednesday September 4, 2013 2:54AM ET
Together with the approval of the plan, the Commission cleared both the aid granted to HGAA and additional aid possibly required for the wind-down.
Commission Vice President in charge of competition policy Joaquiín Almunia said: "After a long time spent trying to agree on a plan to reestablish a viable business model for HGAA, the moment has come to adopt a final decision that closes this chapter once and for all, gradually restores the level playing field in the market and minimises the cost for taxpayers, who have already paid a high price."
According to the plan the operative parts of the bank will be sold while the non-viable remainder is put into an orderly wind-down process. A sales contract for the Austrian subsidiary was already signed in May and the South-Eastern European network will be sold by June 30, 2015 at the latest.
Until the sales process is complete, Austria commits to a number of restrictions for new business, in particular relating to risk control, thus ensuring that the marketability of the subsidiaries is enhanced and that competition distortions are kept to a minimum. ■