ZURICH (Reuters) – UBS will not need the 9 billion Swiss francs (9.28 billion euros) guarantee granted by the Swiss state against losses as part of the takeover of Credit Suisse signed in June, the largest Swiss bank announced on Friday.
UBS also said it no longer needs a liquidity assistance loan of up to 100 billion Swiss francs from the Swiss National Bank and backed by a federal guarantee.
“These measures, which were created under an emergency law to preserve financial stability, will therefore cease to exist, and the Confederation and taxpayers will no longer bear the risks arising from these guarantees,” the Swiss government said on Friday. .
The Swiss authorities have put in place a series of guarantees as part of the takeover of Credit Suisse by UBS.
Among these, UBS and the Swiss government have signed an agreement to cover up to 9 billion Swiss francs (9.28 billion euros) of losses related to its emergency takeover of Credit Suisse.
UBS in June completed the emergency buyout of rival Credit Suisse for 3 billion Swiss francs, creating a Swiss banking giant with a balance sheet of 1.6 trillion dollars and overseeing more than 5 trillion dollars in assets.
The two banks had contracted a loan of 168 billion Swiss francs to another Swiss bank.
Credit Suisse has repaid 50 billion Swiss francs in full of the additional government liquidity aid loans, UBS said.
(Written by Noele Illien; Zhifan Liu)
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