Press Release


EUR 450 Million Capital Injection for BAWAG P.S.K.

Austrian Banks and Insurance Companies Agree to Provide Support

Wien, 6/16/2006


The Oesterreichische Nationalbank (OeNB), the largest Austrian banks and insurance companies as well as the Austrian federal government have agreed on a support deal to ensure normal operations at BAWAG P.S.K. until the group’s planned sale. Prior to this decision, several key legal issues had been clarified by the Austrian Financial Market Authority and the Federal Ministry of Finance. 

 

Under the deal agreed upon, the four credit institutions BA-CA, Erste Bank, ÖVAG and RZB and the four insurance corporations Allianz, Generali, Uniqa and Wiener Städtische founded two corporations on Wednesday to provide support for BAWAG P.S.K. While BA-CA, Erste Bank and RZB will each contribute EUR 100 million and ÖVAG EUR 50 million in capital to one corporation, each of the four insurance companies will contribute EUR 25 million to the second corporation. BAWAG P.S.K. will hold a controlling stake of 20% in both corporations.

 

This arrangement enables BAWAG P.S.K. to increase its eligible capital (tier 1 capital) by EUR 450 million. As a group, BAWAG P.S.K. thus again achieves an adequate capital ratio. To limit the risk exposure for the participating banks and insurance corporations as much as possible, the fundsprovided maybe invested exclusively in top-rated euro government bonds.

 

In a first move to bail out BAWAG P.S.K., the Austrian parliament approved a federal act in mid-May that provided the basis for a EUR 900 million government guarantee.

 

The conclusion of settlement negotiations in the U.S.A., the preparation of the balance sheet for 2005 backed by the federal government guarantee and the improved capital situation have prepared the ground for going ahead with the sale process in a professional manner and on schedule.

 

The steadfast support provided for BAWAG P.S.K. by the key players of the Austrian financial market firmly attests to the determination of Austria’s federal government, the Austrian Financial Market Authority and the OeNB to secure a common goal: maintaining the stability of the Austrian financial market.

 

Inquiries:

 

Oesterreichische Nationalbank

     Abteilung für Öffentlichkeitsarbeit

     Tel.: +43-1-40420-6666

     http://www.oenb.at

 

Bank Austria Creditanstalt

     Peter N. Thier, Pressesprecher / Spokesman

     8425 Pressestelle Österreich / Lassallestrasse 1, 1020 Wien / Vienna / Österreich / Austria

     Tel. +43(0)50505-52371, Fax +43(0)50505-52807

     mailto: peter.thier@ba-ca.comhttp://www.ba-ca.com

 

Erste Bank der oesterreichischen Sparkassen AG

    Michael Mauritz, Pressesprecher/Spokesman

    Leiter Konzernkommunikation/Head of Corporate Communications

    Tel. +43 (0) 50100-19603, Mobil: +43 (0) 664-8180562

    mailto: Michael.Mauritz@erstebank.at

 

Österreichische Volksbanken-AG

    Mag. Uschi Eripek, Öffentlichkeitsarbeit

    Peregringasse 3, 1090 Wien, Austria

    Tel: +43 (0)50 4004- 3838

    mailto: uschi.eripek@oevag.volksbank.at

 

Raiffeisen Zentralbank Österreich AG (RZB)

    Andreas Ecker-Nakamura, Head of Public Relations and Spokesperson

    Am Stadtpark 9, A-1030 Wien, Austria,

    Tel. +43-1/717 07-1753, Fax +43-1/717 07-3802

    mailto: andreas.ecker@rzb.at; http://www.rzb.at

 

Unternehmenskommunikation Allianz Elementar Versicherungs-Aktiengesellschaft 

Allianz Elementar Lebensversicherungs-Aktiengesellschaft

    Dr. Marita Roloff

    Hietzinger Kai 101-105, 1130 Wien

    Tel: +43-1/878 07 – 80726, Fax: +43-1/878 07 – 40261

    mailto: marita.roloff@allianz.at; www.allianz.at

 

Generali Holding Vienna AG

    Josef Hlinka, Konzern-Kommunikation

    Landskrongasse 1-3, 1010 Wien, Österreich

    Tel. +43-1-534 01-1375, Fax +43 -1-534 01-1593

    mailto: josef.hlinka@generali.at

 

UNIQA Group Austria

    Presseservice

    Norbert Heller, Pressesprecher

    Untere Donaustrasse 21, 1029 Wien

    Tel.: +43-1-211 75-3414 ,Fax.: +43-1-211 75-3619, Mobil: +43-664 112 02 37

    mailto: norbert.heller@uniqa.at

 

WIENER STÄDTISCHE Versicherung AG

Vienna Insurance Group

    Mag. Barbara Hagen-Grötschnig, MBA, Leitung Unternehmenskommunikation

    Schottenring 30, 1010 Wien

    Tel.: +43 (0)50 350-21027, Fax: +43 (0)50 350 99-21027, Mobil: +43 (0)50 350 90-21027

    mailto: b.hagen@staedtische.co.at