Switzerland’s authorities have revealed the interest rates Credit Suisse and UBS will pay for the CHF250 billion ($273 billion) emergency lifeline the Swiss banks have been offered.
This content was published on
1 minute
Reuters/ts
Español
es
Las autoridades suizas revelan el coste del salvavidas de liquidez de Credit Suisse
Credit Suisse will pay an interest rate equal to the current Swiss National Bank’s policy rate of 1.5% plus 0.5% for access to the emergency liquidity assistance (ELA) scheme, the central bank said on Thursday.
Credit Suisse said earlier in March it intended to borrow up to CHF50 billion under the facility, which requires loans to be covered by collateral in the form of mortgages and pledged securities.
In measures announced alongside the emergency takeover of Credit Suisse by rival UBS engineered by the authorities, the two banks were also given access to CHF100 billion in additional liquidity assistance (ELA+).
More
More
Credit Suisse agrees to CHF3bn takeover by rival Swiss bank UBS
This content was published on
Ailing Swiss bank Credit Suisse will be taken over by its rival UBS after a frantic last-ditch deal to prevent a catastrophic banking collapse.
This central bank assistance is available to the banks at an interest of 3% plus its policy rate.
To help it mitigate the impact of hefty outflows, Credit Suisse was also given access to an additional CHF100 billion public liquidity backstop, for which it has to pay a 3% risk premium evenly split between the national bank and the Swiss state.
On top of this Credit Suisse owes Switzerland a 0.25% commitment premium for the public liquidity backstop.
More
More
Swiss bank bailout turned poison into profit
This content was published on
Far from losing money on the $31.8 billion (CHF29 billion) rescue act, the government has already made more than a billion dollars and the Swiss National Bank (SNB) is expected to rake in around $6 billion. The bailout was once hailed by former UBS boss Oswald Grübel as: “The best piece of business the central…
Should Switzerland take measures to support its struggling industries?
Industrial policies are back in fashion, not only in the United States but also in the EU. Should Switzerland, where various industries are struggling, draw inspiration from such policies?
As a Swiss Abroad, how do you feel about the emergence of more conservative family policies in some US states?
In recent years several US states have adopted more conservative policies on family issues, abortion and education. As a Swiss citizen living there, how do you view this development?
International hot air balloon festival draws thousands despite bad weather
This content was published on
Despite a few rainy days and the cancellation of the anniversary celebrations, the 45th International Balloon Festival wrapped up under glorious sunshine.
Swiss company supplies Serbia with surveillance technology
This content was published on
A Swiss company has supplied the Serbian government with a geolocation and eavesdropping system, the SonntagsBlick reported on Sunday.
This content was published on
A committee of Switzerland’s House of Representatives has found the people’s initiative to limit fireworks too extreme, but has suggested a counter-proposal.
UN investigators report evidence of crimes in Syria and call for national dialogue
This content was published on
UN investigators in Geneva report ample evidence of crimes in Syria and urge the regime to follow through on its promise of a national dialogue.
Swiss Trade Union warns EU deal could threaten wages
This content was published on
The Swiss Trade Union Federation warns that the new bilateral agreement between Switzerland and the EU could threaten wage protection and public services.
Credit Suisse fines from Mozambique scandal to fund victims’ compensation
This content was published on
The fines imposed on Credit Suisse for the Mozambique scandal will be allocated to a fund for the victims, amounting to $105.5 million.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
How the Swiss ‘trinity’ forced UBS to save Credit Suisse
This content was published on
The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.
UBS re-appoints CEO Ermotti for Credit Suisse takeover
This content was published on
Former UBS chief executive Sergio Ermotti will return to the Swiss bank to lead the takeover of Credit Suisse as CEO of the fused mega-bank.
This content was published on
The dramatic takeover of Credit Suisse by its rival UBS under a government-backed deal has Swiss citizens hot under the collar, a survey shows.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.