Confederation and UBS sign loss protection agreement
Bern, 9.6.2023 - UBS has announced that it will probably complete the Credit Suisse takeover on 12 June 2023. The takeover was the key component of the Federal Council's overall package of 19 March to safeguard financial stability and thus avert damage to the Swiss economy. To make the takeover possible, the federal government provided UBS with a guarantee for potential losses incurred on the realisation of Credit Suisse assets. The loss protection agreement was signed on 9 June 2023. The guarantee will take effect only if the losses arising from the realisation of these assets exceed CHF 5 billion. It is limited to a total of CHF 9 billion. The priority for the federal government and UBS is to minimise potential losses and risks so that recourse to the federal guarantee is avoided to the greatest extent possible. The Federal Council was informed of the loss protection agreement during its meeting on 9 June 2023.