Shareholder Grant to KA Finanz AG

The shareholder grant to KA Finanz AG supports the federal Ministry of Finance’s investment company in sustainably strengthening its equity capital. By converting amounts previously recorded as liability fees into a non-repayable grant, a targeted restructuring contribution is made. The scope of the funding volume is not limited, so that all losses recognized under UGB/BWG – in particular write-downs on securities and loan positions, the creation of provisions for impending losses, as well as expenses resulting from risk reduction measures such as interest rate swaps, credit default swaps, and total return swaps – can be covered. The measure aims to stabilize the capital base of KA Finanz AG and thereby indirectly increase the resilience of the Austrian financial system.

KA Finanz AG has the option to submit applications at any time without a deadline. Prerequisites for granting are proof of losses according to UGB/BWG due to write-downs and risk reduction measures, as well as the recipient status as an eligible company. The instrument was established under the Financial Market Stability Act (Federal Law Gazette I No. 136/2008) and serves to ensure macroeconomic equilibrium as well as to strengthen banks. Technical support and administrative processing are carried out by the Presidential Department I/5 – Participations and Real Estate in the Federal Ministry of Finance.