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FMA increases the write-down ratio for eligible liabilities of HETA ASSET RESOLUTION AG in a new administrative decision from 64.40% to 85.54%

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The Austrian Financial Market Authority (FMA) today, in its function as the national resolution authority, in its third emergency administrative decision reduced the haircut for the eligible liabilities of HETA ASSET RESOLUTION AG (HETA) to 14.46%, leading to a current revised write-down quota of 85.54%. In the second administrative decision issued in relation to the challenge procedure in 2017 (Vorstellungsbescheid II) the creditor bail-in (haircut) still stood at 35.6%, thereby resulting in a write-down quota of 64.4%. As was hitherto the case, subordinated liabilities remain written down to a value of 0%, with interest payments on liabilities also continuing to be set to 0%, with their maturity continuing to be suspended until 31.12.2023. Furthermore the FMA continues to exercise complete control over HETA. These are the outcomes of the emergency administrative decision III which was published today thereby becoming legally effective.

“The particular success in disposing of HETA’s assets, resolving many legal disputes as well as the quicker than expected progress of the wind-down activity justify this increase in the rate for satisfying creditors’ claims,” remarked the FMA’s Executive Board, Helmut Ettl and Klaus Kumpfmüller: “Due to the consistent application of the new European resolution regime for banks, over three billion Euro higher proceeds have already been realised than were expected in the original fair and realistic valuation that formed the basis of the first administrative decision in 2016, which was based on an external opinion, as well as following the principle of prudence.”

The cash reserve held at the Oesterreichische Nationalbank (OeNB) stood at € 2.27 billion at year-end 2018. HETA has already previously paid out € 7.77 billion in two interim distributions (in 2017 and 2018) thereby already partially satisfying the claims of creditors.

The emergency administrative decision as well as accompanying FAQs can be found on the FMA website at: https://www.fma.gv.at/en/resolution-of-heta-asset-resolution-ag/ 

Journalists may address further enquiries to:

Klaus Grubelnik (FMA Media Spokesperson)

+43/(0)1/24959-6001, or +43/(0)676/88 249 516