Chancellor Werner Faymann sees banks footing bill for Hypo. In his recent statements, he has urged Austrian banks to come forward and help the nationalised bank Hypo Alpe Adria in winding down its liabilities, which currently amount to 7 billion Euros ($9 billion).

Chancellor Werner Faymann explained that the Hypo bank met the financial crisis after it started expanding in South Eastern Europe. Several of the operating units of the bank are being sold by Austria whereas many other parts of the business have already been shut down.

The European Commission is strongly pressuring the bank to sell all of its units by the end of the year and clear the liabilities. Also, it has threatened the business to return more than 2 billion Euros of state aid timely. This has somewhat tensed Austria as it believes that rushed sales could hurt the state finances.

Mr. Faymann is also planning to seek help in the matter from the provincial government of Carinthia, Hypo's former owner. He expects the government to make contribution worth 4 to 7 billion Euros.

"One must ask oneself: Who will pay for the possible losses of this potential magnitude?" Faymann said in an interview with ORF television on Sunday. "We'll certainly have to talk about whether the Carinthian government will make a contribution."