Holding for Southeastern Europe of the Austrian bank 'Hypo International' is slowly shaping and should be established by the end of this month, says Vienna Economic Journal 'Wirtschaftsblatt', adding that the Holding should compound all that is the best in the Balkans.
Organization which will consist of sister banks in Slovenia, Croatia, Bosnia and Herzegovina, Montenegro and Serbia, as well as healthy business sectors, like leasing, should make their sale a lot easier.
At the beginning of the month, European Commission extended the deadline for sale of sister banks within 'Hypo group' in the East, by the end of 2015, and the holding model that was proposed by Austria to Brussels, found approval.
National Banks and financial institutions in Slovenia and Croatia have already given their 'green light' for the transitions of the banks into holding, which is strictly technical procedure.
The approval from Serbia and Bosnia and Herzegovina is still expected.
Klagenfurt based Hypo
Bank stresses out that establishment of the holding is not separation, as leadership of the bank and the holding is identical.
-Internal measures are intended to provide clear structure between the section being shut down and the parts of the bank that would continue to work, explained the Bank's spokesman, Nikola Donig.
The job of Austria's new government, that should be established after the Sunday's elections, will also among others be sale of the sister banks. According to the plan, in the 4 quarter of this year, first negotiations about sale will be organized. Even though, internally they are hoping to sell all Hypo banks separately, officially Holding is offered.
Hypo group is counting to profit from the sales several billion, according to the press, precising that the balance of the sister banks in Southeastern Europe was around 10 billion EUR in the first half of this year. The value of transactions was slightly smaller, as the portfolio had to be cleaned from previous debts.
The following step would be obtaining the licence for the bank. Possible appearance at the Exchange, as it was earlier mentioned by Vienna daily papers 'Format', is currently off the table.
- The option of making appearance at the Exchange market is not open, as we are currently in the process of sale, explains Donig. 'Wirtschaftsblatt' reminds that Hypo must solve the issue of 'being a bad bank', which was also given as a task to the new government.