Hypo Alpe Adria is planning to pay off about €2 billion of loans in 2011, Reuters reports. The nationalized Austrian bank, which may redeem a 10th of its €22 billion debt that it borrowed, will repay the loans from the €3.5 billion excess liquidity it has on hand.

The bank now has around €8.5 billion in non-performing loans, including around €7 billion that pay no interest. The bank also expects its loss in 2010 to reduce from the €1.6 billion in 2009 after booking nearly €1.7 billion in risk provisions.