Parliament has been asked to approve the doubling of Switzerland’s contribution to an International Monetary Fund (IMF) monetary crisis bail-out mechanism. The government wants the maximum contribution to be raised from CHF7.7 billion to CHF15 billion ($15.3 billion).
This content was published on
1 minute
swissinfo.ch/mga
The IMF’s “New Arrangements To Borrow” (NAB) fund was set up in 1998External link to issue emergency loans in cases where the global monetary system was under threat. At its annual meeting at the end of last year, IMF members agreed to double the potExternal link from $250 billion to $500 billion.
This is to compensate for the number of outstanding loans that will be rolled over into NAB’s next five-year operational period, starting in 2021.
The financial crisis of 2007/8 spilled over into monetary policy with many central banks having to take extraordinary measures to stabilise national currencies and economies.
On Wednesday, the Swiss government formally asked parliament to approve Switzerland’s doubling of contributions to NAB. It points out that monetary problems in other countries have a destabilising effect on Switzerland by attracting investors to the safe haven franc.
“Through its involvement in the NAB, Switzerland is underlining its importance as a systemically important and credible partner for the Bretton Woods institutions, and reaffirming its role in the international financial and monetary system,” read a government statementExternal link.
Most Read Swiss Abroad
More
Why cars still reign supreme in ‘rail-nation’ Switzerland
Swiss price watchdog slams excessive prices for generic medicines
This content was published on
The cheapest generic medicines available in Switzerland are more than twice as expensive as in other countries, according to a study by the Swiss price watchdog.
Nature should not figure in net zero calculations: academic study
This content was published on
The natural removal of CO2 from the atmosphere by forests or oceans should not be included in the net-zero balance of climate protection measures, argue researchers.
This content was published on
None of the 15 major Swiss retail banks is meeting international climate and biodiversity targets, according to a ranking by WWF Switzerland.
This content was published on
Nestlé's new CEO Laurent Freixe, has presented plans for the future of the world's largest food company, after his first few weeks in office.
Swiss foreign minister calls on Moscow to end Ukraine war
This content was published on
It's high time Moscow ended its war against Ukraine, Swiss foreign minister Ignazio Cassis tells the UN Security Council.
This content was published on
The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
This content was published on
Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
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
Negative interest rates have cost Swiss banks CHF8 billion
This content was published on
Swiss banks have been forced to fork out CHF8 billion in negative interest fees since the Swiss National Bank (SNB) imposed its policy in 2015.
Pressure returns on Swiss franc amid global uncertainty
This content was published on
The escalating trade war between the United States and China means that the Swiss franc is becoming more attractive for investors.
This content was published on
Having lost ground on Tuesday in anticipation of the default, the world’s financial markets regained some losses on the morning after the storm, with the SMI mirroring the Asian markets by opening slightly higher. It closed the day up almost 1.5%. The Swiss franc-euro exchange rate stayed unchanged at around CHF1.04. The markets were buoyed…
This content was published on
The Swiss economy is likely to slow in 2019 followed by a “moderate” recovery in 2020, the International Monetary Fund (IMF) says.
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.