Hypo Vorarlberg:

A bank at the service of Mr. Benko

Hypo Vorarlberg has probably financed a number of air castle projects for Benko's Signa.

(Bild: Hypo BanK Vorarlberg)

The Vorarlberg state bank is expecting a loss in the three-digit million range due to the Signa bankruptcy. The bank may not have been particularly scrupulous when granting loans to René Benko's Luftschloss empire. 

The Signa bankruptcy could cost Hypo Vorarlberg up to 131 million euros - at least according to documents provided by the Financial Market Authority (FMA) to the COFAG-U committee, from where they eventually found their way to "Standard", ORF and "Vorarlberger Nachrichten".

According to the report, the FMA asked Hypo Vorarlberg at the end of November, immediately after the Signa holding company filed for insolvency, whether and to what extent the Landesbank was affected by possible loan defaults due to transactions with the Signa Group. The answer was not very encouraging: They classify 131.2 million euros in Signa loans as "defaulted", Ländle-Hypo let it be known.

The Lamarr luxury department store in Vienna, which so far only exists as a skeleton.

(Bild: klemens groh)

Specifically, the loans relate to six projects, including the Lamarr luxury department store in Vienna's Mariahilfer Strasse (EUR 32.9 million) and Chalet N in Lech (EUR 15.7 million). A total of 47 million euros was even granted to the Benko family private foundation - apparently "without collateral in the form of liens", according to the "Standard".

How could it happen that Hypo granted unsecured loans worth millions to Signa, while honest house builders had to pledge every pebble to the bank?

Eva Hammerer, Klubobfrau der Vorarlberger Grünen

René Benko was apparently courted
In general, Hypo, which is almost 77 percent owned by the state of Vorarlberg, seems to have turned a blind eye in the case of "Wunderwuzzi" René Benko and his Signa. While customers have to fully disclose their financial circumstances for a home loan, for example, in the case of the Tyrolean real estate gambler, "Seitenblicke" appearances with celebrities from politics and business seemed to suffice as security.

What role do René Benko's contacts with the ÖVP play and who is trying to cover something up here? The provincial governor owes the taxpayers of Vorarlberg an answer.

Reinhold Einwallner, Nationalratsabgeordneter der SPÖ

One example of this is an unsecured loan of 25 million euros granted to Signa Holding in 2021, which has since been repaid. This was approved even though the bank's internal lending guidelines were not met. One of the reasons given for this was that Benko "undoubtedly has an excellent and extensive network in business and politics". At this point, it was already clear that the Tyrolean's empire was on very shaky ground.

One thing is clear: Vorarlberg taxpayers have a right to full clarification and a transparent presentation of the processes surrounding these loans.

Christof Bitschi, Landesobmann der Vorarlberger FPÖ

All alarm bells should have been ringing by mid-2022 at the latest. According to ORF, the Austrian National Bank (OeNB) warned those responsible at Hypo of financial difficulties at Signa's real estate holding company during an on-site audit. Among other things, the supervisory authorities are said to have criticized the fact that the risk from real estate financing was "not adequately addressed".

Governor Wallner remains silent
The losses incurred by Hypo Vorarlberg as a result of these shady transactions will not jeopardize the bank's existence. However, the events cast a more than just skewed light on a financial institution that is predominantly state-owned and should therefore act primarily in the interests of the people of Vorarlberg. And what does Governor Markus Wallner, as the highest representative of the owners, have to say about all this? Not much: "The operational business of Vorarlberger Hypothekenbank AG is handled by the Managing Board and not the owner," was the succinct statement from his office. He will not be able to leave it at that.