No signs of balance sheet cheating at Austria's Hypo-FMA

Written By Unknown on Selasa, 03 Maret 2015 | 16.47

VIENNA, March 3 Tue Mar 3, 2015 4:03am EST

VIENNA, March 3 (Reuters) - Austrian bank supervisors have no indication that defunct lender Hypo Alpe Adria improperly valued assets on its balance sheet, the co-head of the Financial Market Authority (FMA) said.

"We have no indications at the moment that the balance sheet was falsified. If we did we would investigate this accordingly," FMA co-head Klaus Kumpfmueller told reporters after an outside audit of the Heta Asset Resolution "bad bank" winding down Hypo assets discovered its balance sheet was overvalued by as much as 8.7 billion euros ($9.73 billion).

Kumpfmueller said the FMA was surprised at the extent of the adjustments but attributed it to the accounting switch triggered by reclassification of the business as no longer a going concern, a significantly worse outlook for economies in the Balkans, and the surge in the Swiss franc that delivered a hit worth hundreds of millions of euros. ($1 = 0.8943 euros) (Reporting by Michael Shields and Angelika Gruber, Editing by Shadia Nasralla)


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