Austrian Prosecutors Open Investigation Into Loan For Major Energy Company - Reports

The Austrian prosecutor's office dealing with fraud and corruption has launched an investigation to look into a loan provided to the country's main energy supplier Wien Energie, Kronen Zeitung reported on Wednesday

VIENNA (UrduPoint News / Sputnik - 14th September, 2022) The Austrian prosecutor's office dealing with fraud and corruption has launched an investigation to look into a loan provided to the country's main energy supplier Wien Energie, Kronen Zeitung reported on Wednesday.

On August 31, the Austrian authorities loaned two billion Euros ($1.9 billion) to the company, which faces bankruptcy amid rising energy prices. The day before, the municipal finance committee approved the issuance of the loan, as well as assistance in the amount of 1.4 billion euros provided by mayor of Vienna Michael Ludwig.

The probe was launched on suspicion of grossly negligent harm to creditors' interests, senior prosecutor Doris Reifenauer was quoted by Kronen Zeitung as saying.

The prosecutor's office saw reasonable initial suspicion after receiving several messages, the report added.

According to Wien Energie, the firm is aware of the investigation and assists the authorities.

Since Austria opened an emergency credit line for Wien Energie, more European energy companies have applied for state aid. National governments have announced measures to protect them in the event of a liquidity shortage caused by rising margin requirements as Russia's special operation in Ukraine has roiled the market.