Swiss authorities reveal costs of Credit Suisse lifeline
Switzerland's 250 billion Swiss franc lifeline thrown to Credit Suisse and UBS could cost them more than 10 billion francs ($10.95 billion) in interest if used in full, Reuters calculations based on official data showed.
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.
The facility 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 100 billion francs in additional liquidity assistance (ELA+).
This central bank assistance is available to the banks at an interest of 3% plus its policy rate.
Credit Suisse was also given access to an additional 100 billion franc 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.
The conditions offered to the Swiss banks are lower than the 4% - 8% interest rates on top of the central bank's policy rate, offered to Switzerland's electricity providers last year as part of a 10 billion franc emergency state credit line.
($1 = 0.9135 Swiss francs)
(Source: Reuters)
Crude prices fall on possible ceasefire in Lebanon
Breaking up Google an option being considered by US, report shows
Boycott on Israel helped Arabs revive their economies: Analysis
Enemy fears us, our weapons, fighters tell Hezbollah’s leader
VIDEO | Silencing anti-Israeli voices
Trump prepares to pull US out of Paris Agreement: Report
VIDEO | Protesters in Sydney demand end to military support for Israel
US, UK strike Yemen’s Hudaydah in support of Israel
VIDEO | 'Greater Israel' scheme in a nutshell
VIDEO | Resistance leaders commemorate Seyyed Hasan Nasrallah
VIDEO | Israel’s war against civilians
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
