Upcoming Ban On Speculative Financial Transactions For Public Bodies

The Austrian Federal Government agreed in its 2013-2018 work programme, on the implementation of a nationwide ban on speculative financial transactions for the Federation, the Austrian Federal States, Austrian Municipalities, and other public bodies. The Federal Government has just announced that the Federation and the Federal States reached the agreement that a uniform nationwide ban on speculative financial transactions would be implemented soon.

Financial scandals caused call for statutory provisions

Since about the year 2000, the number (and amount) of financial transactions such as derivative transactions (eg swaps, options) and investments in various "exotic" currencies entered into by Austrian public bodies, increased drastically. While some of these transactions were entered into for the purpose of hedging underlying financial liabilities (eg interest rate swaps hedging interest payment obligations), others contained speculative elements and aimed to