Austria's Hypo Alpe Adria to Leave Bulgaria - Report

Building of the Hypo Alpe Adria Bank Liechtenstein, HAAB, in Vaduz, Liechtenstein. Photo by EPA/BGNES

Austrian Hypo Alpe Adria said it plans to withdraw from half of its markets, including Bulgaria, by 2014, local media reported.

The other countries that the bank, which was nationalized by the Austrian government in a bid to avoid bankruptcy, will leave are Montenegro, Hungary, Macedonia and Ukraine.

The bank branches in a number of Austrian cities, including Vienna, Linz, Salzburg, Innsbruck are expected to be closed.

The move is said to be part of the bank's strategy to strengthen its its business. The bank will also sell the assets, not related to its banking operations, including its hotels and tourism activities.

Hypo Alpe Adria bank, which opened doors in Montenegro's capital of Podgorica four years ago, told a local media that the announcement was “pure insinuation”.

The bank is expected to post EUR 411M loss in 2010 and will turn to profit no earlier than 2013.

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