In the course of the restructuring of Kommunalkredit Austria AG, initiated after the liquidity crisis in 2008, the company was split up, as planned, into two independent entities, effective as of 28 November 2009.
Operating under the official name of “Kommunalkredit Austria AG”, Kommunalkredit New will carry on and further expand the bank’s core business, in particular its municipal and infrastructure-related project business. Current plans foresee the privatisation of the bank in the future.
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KA Finanz AG holds the securities and CDS portfolio remaining after the demerger of Kommunalkredit Austria AG and is in charge of its structured rundown. Equipped with a banking licence, the company – like all other Austrian banks – is subject to supervision by the FMA (Financial Market Supervisory Authority).
The activities of KA Finanz AG are focused on portfolio management, in particular on running down the remaining portfolio. Depending on market conditions, every effort will be made to realise any value recovery potential.
Prior to their implementation, the demerger measures had been brought to the knowledge of the European Commission. The final approval of the entire restructuring plan by the European Commission was granted on 31 March 2011.
As of 18 September 2010 Kommunalkredit International Bank (Cyprus) was merged into KA Finanz AG.
OWNERS:
99.78% Republic of Austria
0.22% Austrian Association of Municipalities