AUSTRIAN GUARANTEE WANTED ON STATE FIRM DEBTS
Head of the Chamber of Commerce's Money
and Credit section, Hellmuth Klauhs, said the government should
guarantee any company debts arising from the planned
restructuring of the public sector.
    Klauhs said that there was no doubt that the government
would meet its obligations. "But the owner should say this
clearly once again," he added.
    Klauhs said 35 billion of 61 billion schillings owed by
firms under the state holding <Oesterreichische
Industrieholding AG> (OIAG) currently had no formal state
guarantee. Nine of the 35 billion schillings were owed to
foreign banks.
    Klauhs, also managing director of <Genossenschaftliche
Zentralbank AG>, said banking industry officials would discuss
the issue with finance minister Ferdinand Lacina next month.
    Lacina said last week a special guarantee would be
unnecessary, as state industry had the financial power and
enough liquidity to pay its debts.
    The government has said the latest injection of state funds
into OIAG to cover losses will be the last.
    Under a restructuring plan, OIAG is to create five new
holding companies divided by sector.
 REUTER
