Maritime International Advisor

AUSTRIAN BANKING – ANGLO IRISH BANK AG / VALARTIS GROUP AG

As a member of the EU, depositors are fully protected up to 50,000 Euros, plus Austrian law provides depositors full protection of securities held off-balance (ref. Austrian Banking Law §93). Austria has not experienced a bank failure since 1939. Regardless of the EU regulations, as indicated below, deposits in Austrian banks are fully protected always. This is important as the EU protection has a limited time frame, currently set for the end of 2009.

Under Austrian Bank Law all Austrian banks must be at least 8% capitalized (ref. Austrian Banking Law §22 on solvency). Anglo Irish, Vienna, is in fact capitalized in excess of 20% and the bank, since its formation in 1890, has not experienced a single year in the red.

All Austrian financial institutions, such as banks, must be members of a deposit protection facility within the framework of their particular trade association. The member institutions must, in any given business year, make contribution payments to the deposit facility reserve.

If, for any reason, the deposit protection facility is unable to pay out on protected deposits, then the deposit protection facilities of the other trade associations are obliged to pay the depositors. If, all together are unable to pay, the facilities may then issue bonds for which the Austrian government accepts liability. Therefore the deposits are eventually guaranteed by the full faith of the Austrian Central Bank.

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