(Adds comment from financial regulator FMA)
VIENNA, June 30 (Reuters) - Austria's Heta Asset Resolution will make a larger-than-expected first payout to senior bondholders of 5.8 billion euros ($6.6 billion) in July, it said on Friday.
Heta is the bad bank set up by the government to wind down collapsed lender Hypo Alpe Adria.
"Roughly 5.8 billion euros are expected to be paid in the second half of July ...to creditors holding qualifying bonds," Heta said in a statement, referring to senior bondholders.
Austria's Financial Market Authority (FMA), which is overseeing the wind-down, had expected an initial payout of 4 billion euros.
The FMA said in a statement it was optimistic that the amount that will be earned by the end of the wind-down in 2023 would be more than the 8.6 billion euros it predicted in April.
Heta said on Friday its cash reserves had reached 8.5 billion euros by the end of May.
The collapse of Hypo Alpe Adria left the province of Carinthia liable for 11 billion euros in guarantees it had made on the face value of Hypo's bonds.
The federal government loaned Carinthia money last year to acquire virtually all of Heta's bonds, saving the province from possible bankruptcy.
Creditors holding 99.6 percent of Heta's senior bonds sold them back to Carinthia at a discount.
The province added a sweetener that could allow creditors to recover about 90 percent of the face value of the bonds.
$1 = 0.8769 euros Reporting by Francois Murphy, Shadia Nasralla, Kirsti Knolle; editing by Jason Neely and David Evans