BAWAG ends media speculation (17.03.2006)

All operative business relations between BAWAG and Refco or other, Anguilla-based entities mentioned in recent media reports, are historic and were wound down over the last few years.
 
There are no current transactions or business relations with these Anguilla entities, and therefore no outstanding financial exposure from such transactions. In particular, we emphatically reject rumours of an additional exposure of EUR 180 million as completely untrue.
 
Moreover, the Managing Board of BAWAG P.S.K. decided in February 2006 to discontinue the financing of customer activities in the PIPE issuance market. BAWAG would only ever have been involved in such transactions as an intermediary for its customers.
 
The outstanding maximum credit exposure of BAWAG in connection with Refco is EUR 392 million. This amount has been fully provided for in the 2005 financial statements. It includes the EUR 350 million loan disbursed in October 2005, the repayment of which is the subject of the action for fraud that we have brought against Mr Bennett and Refco.
 
Our accounts for 2005 will nevertheless show a profit for the year.
 
For further information, please contact:
BAWAG P.S.K. Press Office
Georg Coch Platz 2
A-1018 Vienna
Thomas Heimhofer, Phone +43 / 1 / 534 53 / 31210