Credit Suisse has to pay for liquidity assistance: the federal government has already raised millions with CS liquidity loans

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The federal government opened up its wallet to save Credit Suisse, and the anger at the financial risk was huge. However, the federal government has so far made good money from the emergency takeover: as can be seen from the overview on its website, at the end of April it received about 80 million francs with liquidity assistance for CS. Federal Department of Finance (FDF).

On the one hand, Credit Suisse paid a cumulative risk premium of CHF 50.8 million for the liquidity assistance guaranteed by the federal government in the period from March 20 to April 30, according to the FDF. The large bank has to pay a risk premium of 1.5 percent on loans actually drawn for loans taken under this “Public Liquidity Stopper” (PLB). The amount withdrawn from “PLB” from Credit Suisse at the end of April was still around CHF 10 billion.

Aim for fast payback

In addition to the risk premiums, there are also premiums related to the provision of the loan amounting to CHF 28.5 million as of the reporting date. However, these premiums can only be transferred after the loan agreement has expired. The 0.25 percent commitment premium amounts to a total of 100 billion francs – that is, 250 million francs for a full year.

The full cost of emergency liquidity is not yet in question for the big bank: it also has to pay interest and a risk premium to the Swiss National Bank (SNB). The significant costs of the “Public Liquidity Stopper” should also encourage CS to repay this loan as soon as possible.

In addition to PLB, CS, in deep crisis, had access to other SNB loans in mid-March: In addition to the over 50 billion SNB liquidity assistance under bank guarantee (“Immediate Liquidity Assistance” ELA), SNB owned CS and UBS also provided another liquidity assistance loan (“ELA Plus”) for a total of up to 100 billion under bankruptcy privilege. (SDA/sfa)

Source :Blick