{"id":19721,"date":"2016-04-10T12:47:49","date_gmt":"2016-04-10T17:47:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=19721"},"modified":"2016-04-10T12:47:49","modified_gmt":"2016-04-10T17:47:49","slug":"austria-just-announced-a-54-haircut-of-senior-creditors-in-first-bail-in-under-new-european-rules","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=19721","title":{"rendered":"Austria Just Announced A 54% Haircut Of Senior Creditors In First “Bail In” Under New European Rules"},"content":{"rendered":"

Austria Just Announced A 54% Haircut Of Senior Creditors In First “Bail In” Under New European Rules<\/a><\/h3>\n
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Just over a year ago, a\u00a0black swan landed in the middle of Europe<\/a>, when in what was then dubbed a “Spectacular Development<\/a>” In Austria, the “bad bank” of failed Hypo Alpe Adria – the Heta Asset Resolution AG – itself went from good to bad, with its creditors forced into an involuntary “bail-in” following the “discovery” of a $8.5 billion capital hole in its balance sheet primarily related to ongoing deterioration in central and eastern European economies.<\/p>\n

Austria had previously nationalized Heta\u2019s predecessor Hypo Alpe-Adria-Bank International six years ago after it nearly collapsed under the bad loans it ran up when it grew rapidly in the former Yugoslavia. Having burnt through \u20ac5.5 euros of taxpayers\u2019 money to prop up Hypo Alpe, Finance Minister Hans Joerg Schelling ended support in March 2015, triggering the FMA\u2019s takeover.<\/p>\n

This was the first official proposed “Bail-In” of creditors, one that took place before similar ad hoc balance sheet restructuring would take place in Greece and Portugal in the coming months. Or rather, it wasn’t a fully executed “Bail-In” for the reason that creditors fought it tooth and nail.<\/p>\n

And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority,\u00a0Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG.\u00a0<\/strong><\/p>\n

The highlights from the\u00a0announcement<\/a>:<\/p>\n

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Today, the Austrian Financial Market Authority (FMA) in its function as the resolution authority pursuant to the Bank Recovery and Resolution Act (BaSAG – Bundesgesetz \u00fcber die Sanierung und Abwicklung von Banken) has issued the key features for the further steps for the resolution of HETA ASSET RESOLUTION AG. The most significant measures are:<\/div>\n<\/blockquote>\n
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…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Austria Just Announced A 54% Haircut Of Senior Creditors In First “Bail In” Under New European Rules Just over a year ago, a\u00a0black swan landed in the middle of Europe, when in what was then dubbed a “Spectacular Development” In Austria, the “bad bank” of failed Hypo Alpe Adria – the Heta Asset Resolution AG […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[7548,42,3855,77,3325,284,1167,3856,1464,6654,5415,4696,670,4318],"class_list":["post-19721","post","type-post","status-publish","format-standard","hentry","category-economics","tag-8-5","tag-austria","tag-bad-bank","tag-black-swan","tag-creditors","tag-european-union","tag-greece","tag-hypo-alpe-adria","tag-italy","tag-lehman","tag-lehman-brothers","tag-portugal","tag-recovery","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19721"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19721\/revisions"}],"predecessor-version":[{"id":19722,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/19721\/revisions\/19722"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}