Austria's FMA Said to Tell Heta Creditors to Write Down Debt
- FMA recommends writing down seniors to 30%, juniors to zero
- Regulator says Carinthian guarantees don't avoid write-down
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Austria’s banking supervisor recommended that the nation’s banks write down bonds of Heta Asset Resolution AG after it earlier imposed losses on Heta’s creditors, according to two people with knowledge of the matter.
The Finanzmarktaufsicht, or FMA, which is responsible for banking supervision in Austria and for the resolution of Heta, told banks they can’t assume that guarantees for Heta’s debt issued by the province of Carinthia will help offset losses, according to the people, who asked not to be identified because the discussion is private.