Yesterday, the European Commission announced the approval of a €100 million aid program by the Austrian government aimed at recapitalizing the Austrian bank, Hypo Tirol Bank Aktiengesellschaft. Under the plan as approved, Hypo Tirol will issue €100 million in securities bearing a 5% annual dividend, with some restrictions to preserve the bank's capital ratio and provide an exit incentive. These securities will be guaranteed by the Austrian government for ten years. In exchange for the guarantee, Hypo Tirol will pay the Austrian government's banking interest, Landes-Hypothenkenbank Tirol Anteilsverwaltung, a progressively increasing guarantee fee, initially 3.9% and eventually rising to 6.6% in the tenth year.

In announcing its approval, the European Commission described Hypo Tirol as "among the important Austrian banks." The European Commission was notified in April 2009 by Austrian authorities of their intention to recapitalize Hypo Tirol.