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Hungry Hypos

26 February 2014 By Dominic Elliott, Neil Unmack

Vienna is mulling letting Hypo Alpe Adria fail after a 4.8 bln euro bailout. Bondholders should be bailed in, but most are covered by a guarantee from the local state. Haircutting them would be politically messy and a headache for Austria’s other state-supported mortgage banks.

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