As per recent reports, it has been revealed that Austria is at quite an embarrassing position due to Kommunalkredit Austria AG. It has been said so as it has failed to sell Kommunalkredit, which is said to be the first Austrian bank that was nationalized in 2008.

It has been found that the bank was unable to be sold in a "value-preserving" manner by Finanzmarktbeteiligung AG. It is the firm, which manages the state aid for banks from the side of Austria.

"The privatization process brought up several seriously interested buyers, but the offers that were filed were extremely complex, economically hardly attractive, and linked to conditions burdening Austria", said Kommunalkredit.

Problem has been created as European Union has set deadline till June. On the other hand, Austria is making efforts to control the situation. It will be having a meeting with the 27-member bloc to discuss what steps needed to be taken in the coming time.

Kommunalkredit has informed that Austria is not going to initiate any novel business. The bank was earlier owned by Oesterreichische Volksbanken AG (VBPS) and Dexia SA (DEXB) and received nationalized symbol in 2008. It did so in order to avoid any sort of collapse.