VIENNA Oct 11 Austria will borrow roughly 3
billion euros ($3.4 billion) more this year than originally
planned, the Federal Financing Agency said on Tuesday, an
increase that is aimed at lending the province of Carinthia the
money to buy bonds of "bad bank" Heta Asset Resolution
Carinthia said on Monday that almost all Heta's creditors,
which hold bonds with an original face value of 11 billion
euros, had accepted its buyback offer. Most of them will receive
three-quarters of that face value, which they can top up by
reinvesting that money in a bond guaranteed by Austria.
Heta creditors holding senior bonds, the bulk of the paper,
can sell their top-up bonds back to Carinthia within a 180-day
window starting on Dec. 1.
The Federal Financing Agency increased the amount it expects
to borrow this year to 30 billion to 33 billion euros, though it
left the expected amount of government bonds unchanged.
In its funding outlook for 2016 published in December, the
Federal Financing Agency said Austria planned to borrow 27
billion to 30 billion euros this year, of which 20 billion to 22
billion would be government bonds. The agency also issues
treasury bills and medium-term notes and raises loans.
($1 = 0.8928 euros)
(Reporting by Francois Murphy; Editing by Kirsti Knolle)