ÖVP warns Burgenland property company faces financial strain
Friday 2nd October 2026 on 14:15 in
Austria
Burgenland’s ÖVP has warned of “alarming financial indicators” at Landesimmobilien (LIB), the state-owned property company, citing a report that it says points to a statutory presumption of a need for reorganisation. LIB disputed that assessment, ORF reported on Friday.
The ÖVP said LIB’s liabilities rose by nearly 91 million euros in 2025, reaching 455 million euros. Its equity ratio fell from 6.82 to 5.61 per cent, while its theoretical debt repayment period increased from 43.06 to 43.92 years.
Under the criteria cited by the party, a reorganisation need is presumed when the equity ratio is below eight per cent and the theoretical debt repayment period exceeds 15 years.
ÖVP state party leader Christoph Zarits called on Governor Hans Peter Doskozil of the SPÖ to explain how the company’s financing would be secured over the long term and what obligations it could create for the state. Zarits also said LIB’s liquid assets had fallen from about 10.8 million euros to 28,000 euros.
ÖVP parliamentary group leader Bernd Strobl said the annual accounts showed that state guarantees covered about 383.6 million euros in liabilities. He noted that LIB’s report described the state’s creditworthiness as a central risk to the company. The party called for a full overview of guaranteed financing, its terms and projects, as well as the state’s long-term rent payments and subsidies.
LIB told the Austria Press Agency that the indicators were the “logical consequence” of a deliberate strategy to invest in Burgenland and create lasting value. It said each new building project lowers the equity ratio as a mathematical consequence of the company’s structure, but that the projects pay for themselves and are not meant to require additional state funding.
The company cited investments including the expansion of the Pinkafeld campus, the ceramics school in Stoob, the Güssing cultural centre and the House of Ethnic Groups in Oberwart. LIB said its fixed assets had risen by the same amount as its liabilities, leaving assets of equal value behind the increase.
LIB said the ÖVP’s questions are addressed each year during the audit of its annual accounts. It said the company has received an unqualified audit opinion from its current auditor and several independent firms for years.