EU Bail-Ins Cometh As Austria Sees Bail-In
The coming bail-in regime raises the spectre of the effective loss of their investments and savings due to the new legislation which will again bail out insolvent banks.
On July 8, the Austrian government had its parliamentary groups pass special legislation for a bail-in of Hypo Alpe Adria bank (HAA), in the range of nearly EUR 900 million.
The Austrian government’s legislation on bail-ins goes further than EU legislation, as it does not exempt from the bail-in the first EUR 100,000 on deposit.
The victims of the bail-in are hundreds of thousands of Austrians who bought life insurance policies.
Indeed, the insurance companies had invested in HAA bonds that will no longer be guaranteed under this legislation