The logo of Hypo Alpe Adria bank is seen in Vienna, capital of Austria, March 12, 2014. The Austrian cabinet gave the green light Wednesday for a renewed injection of funds to troubled bank Hypo Alpe Adria, Kronen Zeitung newspaper reported. (Xinhua/Qian Yi)

The Austrian cabinet gave the green light Wednesday for a renewed injection of funds to troubled bank Hypo Alpe Adria, Kronen Zeitung newspaper reported.

The exact amount of funding the bank will receive remains open, but it is expected to be in the hundreds of millions of euros. It is believed the main impetus for the decision was a high-risk bankruptcy warning from the bank as well as a "warning letter" from the auditor.

Finance Minister Michael Spindelegger said following the sitting that the bank needed new capital very quickly, while Chancellor Werner Faymann warned about trifling with the credit rating of the country as well as bankruptcy scenarios.

According to the Hypo taskforce headed by National bank Governor Ewald Nowotny that advises the government on Hypo matters, time is of the essence.

It said clarity about the course of action is needed by mid-March at the latest in order to avert the insolvency of the troubled Carinthian bank.

However, Spindelegger said he was tending toward "end of march" to finalize details for downsizing the bank, which he said gives enough time. He added solutions must be realistic and realizable, and that the "best option will be chosen."

Faymann said he would like to negotiate with state governments over giving up their share of the banking levy to aid in the matter, though the state governors have till now firmly declined. The chancellor said negotiations were continuing however, and that "our arguments are good."