There have been better times for real estate juggler René Benko. Investigations are ongoing into the suspected bribery of former Treasury Secretary Thomas Schmid. It is the presumption of innocence. Business is not going so well either. Signa’s banking activities come into focus – including politics.
Focus Germany: After the bankruptcy of the department store chain Galeria, which belongs to its Signa Group, the Tyrolean is faced with a construction site worth billions. And now this: The European Central Bank (ECB) is scrutinizing the commitments of European banks to Signa. That reports the Handelsblatt.
ECB: “We do not comment on the facts”
The ECB wanted to know details about credit commitments. The central bank’s central questions are: how high are the credit risks for the banks, are the loans covered and if so, how? When asked by the “Krone”, the ECB said: “We do not comment on the facts.” However, this means that the facts exist.
“Is Vienna’s financial center in trouble?”
In Austria, the issue becomes a political one. The Greens, led by Nina Tomaselli, presented a parliamentary question to Finance Minister Magnus Brunner (ÖVP) on Thursday. Title: “Is there a threat to Vienna’s financial center from the signing of Benko?”
Connections with Russia
According to the request, Benkos Signa had been one of the main clients of the Russian-European subsidiary Sberbank for many years. The Netherlands Authority for the Financial Markets (FMA) revoked Sberbank’s license in 2022 by order of the ECB. Now they want to know from the minister whether he has entrusted the FMA with the inspection of Signa or which Austrian banks are at increased risk due to Signa’s transactions. Brunner has eight weeks to respond.
The “Krone” also asked Signa and Benko about the developments. His lawyer has not yet responded.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
