Two influential Swiss parliamentary committees have backed CHF109 billion ($120 billion) in state bailout funds to smooth the takeover of Credit Suisse bank by UBS.
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Las comisiones parlamentarias suizas apoyan los miles de millones del rescate bancario
The Swiss government has agreed to put CHF9 billion of taxpayer money on standby to cover potential losses for UBS as it acquires rival bank Credit Suisse.
The state is also acting as guarantor for CHF100 billion of liquidity loans being offered by the Swiss central bank. Both implicit bailout funds require parliamentary approval.
The parliamentary committees have also demanded answers from government ministers and regulators about the emergency takeover announced on March 19.
In addition to the CHF109 billion, the Swiss National Bank (SNB) has also offered another CHF100 billion in emergency liquidity to Credit Suisse to keep it afloat before the takeover is complete.
This part does not require parliamentary consent as it is not backed by state funds.
The SNB stressed that the CHF200 billion it is making available to the banks do not come for free but are loans that charge interest.
An additional 0.25% fee that could theoretically net the state CHF250 million this year. But the CHF21 million per month payments will cease when UBS has completed the takeover of its rival, which is likely to take place before the end of the year.
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