Swiss government says it has reached agreement with UBS on loss guarantees

Credit Suisse AG

09/06/2023 08:59

ZURICH, June 9 (Reuters) - The Swiss government has
signed an agreement with UBS  UBSG.S  to cover up to 9 billion
Swiss francs  ($10.01 billion) in losses from its emergency
takeover of Credit Suisse  CSGN.S , the finance ministry said on
Friday.
    "To make the takeover possible, the government granted UBS a
guarantee for any losses incurred in the liquidation of Credit
Suisse assets," the government said.
    "The guarantee will only come into effect if the losses from
the liquidation of these assets exceed 5 billion Swiss francs
and is limited to a total of 9 billion," it added.
    That reflects the terms of the takeover orchestrated by
Swiss authorities in March to ease Credit Suisse's rescue, under
which UBS committed to cover the first 5 billion francs in
potential losses while the government would shoulder up to 9
billion francs on top of that.


($1 = 0.8990 Swiss francs)

 (Reporting by John Revill
Editing by Tomasz Janowski)
 ((John.Revill@thomsonreuters.com; +41 41 528 36 37; Reuters
Messaging: john.revill.thomsonreuters.com@reuters.net))