Bank Austria sets aside $336m<\/p>\n
VIENNA (Bloomberg): Bank Austria AG, the country's largest
\nbank, said yesterday it set aside 4.2 billion schillings (US$336
\nmillion) as of June 30 to cover possible bad loans in Russia and
\nIndonesia.<\/p>\n
The statement came as emerging market stocks and bonds tumbled
\nas concern increased that Russia will have to devalue the ruble
\nand as currencies weakened in Asia, where economic recessions are
\ndeepening.<\/p>\n
\"Bank Austria feels comfortable with the provisioning level in
\ngeneral and in particular that of emerging market exposures,\" the
\nbank said.<\/p>\n
\"An aggravation of the situation in the emerging markets would
\nnot substantially impact the Bank Austria Group.\"<\/p>\n
At the end of June, the bank's Russian loans amounted to 13.3
\nbillion schillings, of which only a small portion was ruble
\ndenominated, the bank said. It made provisions of 2.9 billion
\nschillings for its loans to Russia.<\/p>\n
In Indonesia, the bank's exposure amounted to 5.3 billion
\nschillings at the end of June, and it made provisions of 1.3
\nbillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-austria-sets-aside-336m-1447893297",
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"sponsor": "Okusi Associates",
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