Austria took control of Hypo in 2009 to avoid a collapse that could have shaken central and eastern Europe. The bank now aims to shrink back to health by focusing on business in southeastern Europe.It has been trying to extend a March 2012 deadline for raising around 1.5 billion euros ($2.06 billion) in fresh capital that regulators propose it gather to strengthen its balance sheet and be able to absorb worst-case shocks.In the radio interview on Tuesday Kranebitter reiterated that Hypo could raise the money itself if given enough time to continue its divestment and reorganization program.”From today’s perspective we need time and we have to handle the downsizing as planned — that means without losses. If we succeed that means we won’t need any money,” he said.He said the bank had signs that regulators were prepared to hold a “constructive dialogue” on the matter but he declined to elaborate.Asked whether Hypo had the money to repay more than 3 billion euros in financing provided by former owner BayernLB BAYLB.UL, he said:”The liquidity situation of the bank has me sleeping soundly. We have a billion (euro) buffer of excess liquidity. We are sufficiently provisioned to meet these obligations.”($1 = 0.727 Euros)
