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According to Federal Councilor Karin Keller-Sutter (59), the takeover of Credit Suisse by UBS attracted a lot of attention at the spring meeting of the International Monetary Fund (IMF) and the World Bank.
“During the talks we had, it was internationally recognized that the solution chosen with the acquisition by UBS has prevented an international financial crisis,” Keller-Sutter told media representatives in Washington on Friday afternoon.
Central banks were impressed
Central bank governors were also relieved on the one hand and impressed on the other that Switzerland managed to stabilize the situation in such a short time, said the president of the Swiss National Bank (SNB), Thomas Jordan (60).
“We were able to prevent major damage to Switzerland. But it was also internationally important that Switzerland did not become the first domino of a systemic crisis,” said Jordan. The National Bank went to great lengths in issuing emergency liquidity. “But we did this to really avoid a financial crisis, in the importance of Switzerland.”
Keller-Sutter and Jordan emphasized that it is now important that the acquisition can be successfully completed. “Only with this takeover can we create the necessary stability,” said the SNB chairman. After that, the “too big to fail” scheme and the experiences and lessons learned from this crisis should be reviewed.
According to Keller-Sutter, she made the parliamentary decision to reject the CS deal with equanimity. “The legal situation is clear,” said the finance minister. You must present the loan to parliament, but it has already been mandated by the financial delegation. A no from Parliament therefore has no consequences. “It has not yet become clear to everyone in Switzerland that this solution actually prevented an international financial crisis,” said Keller-Sutter.
Excessive inflation remains the main problem
The SNB shares the IMF’s assessment of the subdued economic outlook, Jordan said. Ensuring price stability remains the biggest challenge globally and must be a top priority everywhere.
From an international perspective, Switzerland is in relatively good shape, both in terms of economic activity in general and inflation. “Inflation in Switzerland is significantly lower than abroad at about 3 percent,” said Jordan. The monetary policy measures taken in the past have helped a lot in this regard.
“Nevertheless, we are of course not satisfied with 3 percent inflation. It is also our top priority to bring inflation back into the range of price stability.” It cannot be ruled out that monetary policy in Switzerland will have to be tightened even further.
In addition to the multilateral meetings, several bilateral meetings with the finance ministers took place. Federal Councilor Keller-Sutter met Janet Yellen (76, USA) and exchanged views with Bruno Le Maire (53, France), Jeremy Hunt (56, UK), Nadia Calviño (54, Spain), Sigrid Kaag (61, Netherlands). ) and IMF Chief Kristalina Georgieva (69), ECB President Christine Lagarde (67), OECD Secretary General Mathias Cormann (52) and EU Commissioner Paolo Gentiloni (68). (SDA/sq)
Source:Blick
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