The eXXpress has now received the entire loan agreement between the City of Vienna and the federal government for the absurdly high loan of 1.75 billion euros. And right after a first look through the agreements, it is clear why neither the Viennese SPÖ mayor nor his SPÖ finance councilor Peter Hanke wanted to show this paper to the public.
Under “3. The Federal Financing Agency is demanding “commitments” by September 15 – i.e. by next week – “detailed information” about “the reasons why there was a tight liquidity situation” at Wien Energie, taking into account the price developments on the electricity and natural gas markets.
Wien Energie must now disclose all transactions from January 1, 2020. The main issue is whether “the company has taken on objectively unjustifiable risks such as speculative transactions and short sales”.
With these formulations, it is quite clear that financial problems at Wien Energie have not only arisen since July 15 or since a “Black Friday”, but much earlier.
In addition, Vienna’s mayor had to promise in the hitherto secret loan agreement that Wien Energie was “not insolvent”. And: That there should no longer be any payout of bonuses that are “determined by market behavior”. This requirement of the federal government allows the conclusion that this must have been the case.
In addition, the City of Vienna and Wien Energie are prohibited from paying out possible profit distributions on the basis of the loan agreement.