Millions in loans gone

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The Raiffeisen Association Salzburg(Bild: RVS)

Now it's official: Raiffeisenverband Salzburg (RVS) is swallowing up Raiffeisenbank Flachgau Mitte. After the bank's general meeting approved the takeover on Tuesday evening, the agreed sum of 18.5 million euros was transferred.

Now it's final: the Salzburg Raiffeisen Association (RVS) has swallowed up Raiffeisen-Bank Flachgau Mitte. A suspected criminal case triggered these measures. 18.5 million euros had to be paid to join the association. The payment made by the new owner RVS was necessary so that Flachgau-Mitte-Bank can meet all its obligations to its private and business customers

WKSTA has already initiated investigations
Raiffeisenbank Flachgau Mitte had granted loans amounting to more than 20 million euros to three property developers over the past three years. Two trustees allegedly used the disbursed loans contrary to their intended purpose and land register collateral was not properly executed.

The Vienna Public Prosecutor's Office for Economic Affairs and Corruption (WKSTA) has already begun investigations in connection with one of these trustees. However, the comprehensive examination of the transactions has not yet been completed. Among other things, it is not yet clear whether parts of the loans can be recovered. Only then will the exact amount of the loss be quantified.

It is emphasized that the bank will remain independent. A new management team has been announced for the coming weeks. Personnel changes are also expected in the Supervisory Board and Management Board.