Monday, March 2, 2015

Europe Watch ( March 2 , 2015 ) - HETA ( Austria Bad Bank ) in focus as bail in looms for creditors ....Europe data of the day , unemployment ( EZ area 11.2 percent , EU 28 9.8 percent ) and inflation ( -0.3 for Feb 2015 ) data released ..... QE and bond market items of note .... Russia and Ukraine items of note ..... Italy items of note.



Austria "bad bank" bonds just got Lehmaned. Will need a bigger bad bank...

New EU rules to impose losses on bondholders come into play with Austrian bad bank

So, here's the thing. As HETA is state-owned legacy asset disposal vehicle, not lending bank, trading while insolvent is not a crime, yes?

And putting HETA into an insolvency procedure would completely negate the whole point of setting it up in the first place.

And therefore the guarantees will not be triggered even if HETA never pays another cent in debt service.

In short, HETA is the ultimate zombie bank

Anyone hoping to claim on those guarantees wd have to prove HETA is insolvent even tho the authorities say it isn't. Good luck with that....

's Europe affairs Dep. Min Mendez de Vigo says should do less talking, do more reforms. (BBG)

Let begin: This mth sees start of ’s €60bn/mth bond purchases. Italy/German spread shrinks to lowest in 5yrs.

Investigators of Russian opposition politician's murder get CCTV footage from crime site

Witness of Russian politician's murder not allowed to leave Moscow for safety concerns

Kiev disbanding notorious militia battalion - new unit under army control

Russian foreign minister warns against politicised interpretations of Nemtsov murder

Ukraine’s president confirms request to UN, EU about peacekeepers

About 1,000 miners protest by Ukrainian parliament against overdue wages

Ruble drops as shocking Nemtsov death raises serious questions as to how investors should view .