The standoff with police in Erpfendorf, an Alpine town near the German border in Tyrol province, started late today morning. Police said the explosives he claimed to have with him turned out to be fake as was his gun, the Austria Press Agency reported.
The bank's employees were able to leave the building unharmed.
After several hours of negotiations, police say the hostage-taker agreed in the late afternoon to free his victim.
The kidnapper, a 28-year-old local man, then left the bank himself and was arrested.
The hostage-taker claimed to have put an explosive belt on his victim, but that turned out to be a belt filled with stones. It wasn't immediately clear what his motive was.
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