Image for credit suisse loan program

Credit Suisse to devise a £17 billion loan program to support the SME amidst Coronavirus emergency

Written by
Written on Mar 14, 2020
Reading time 3 minutes
  • Credit Suisse to devise a £17 billion loan program to support the SME amidst Coronavirus emergency.
  • UBS, Raiffeisen Bank, and Zuercher Kantonalbank likely to join hands with Credit Suisse for the initiative.
  • Swiss government pledges £8.5 billion in financial assistance to the SME.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

The
global community is coming together to tackle the economic impact of the Coronavirus
emergency. In recent news, Handelszeitung reported that the major lenders of
Switzerland have joined hands to devise a loan program worth over £17 billion
directed at the small businesses that are facing a crisis due to the
Coronavirus driven disruptions.

CEO
Thomas Gottstein Of Credit Suisse To Lead The Proposal

Copy link to section

According
to the newspaper that didn’t divulge its sources, prominent names like Credit
Suisse (SWX:CSGN) and UBS are strategizing to devise a loan program that can
offer sufficient funding to the country’s SME (small and medium enterprises)
that are currently confronted with a shortage of liquidity. Large local lenders
like Raiffeisen and Zuercher Kantonalbank are also expected to participate in
the aforementioned initiative.

The
report further highlighted that CEO
Thomas Gottstein of Credit Suisse
leading the aforementioned proposal.

In
its statement on Saturday, Credit Suisse highlighted that it is constantly in
contact with the Swiss government and other relevant authorities including FINMA
(financial supervisor) and Swiss National Bank. The bank said it is committed
to exploring the available options that can support small and medium-sized businesses
in Switzerland through credits and liquidity.

Raiffeisen
Bank and Zuercher Kantonalbank didn’t respond to a request for comment at the
moment. UBS refused to comment or divulge any further information at this
stage.

Swiss
Government Pledges £8.5 Billion In Financial Assistance To The SME

Copy link to section

On
Friday, the Swiss government had also reiterated that it is a priority to
expand the response to the rapidly growing pandemic. The government also
pledged over £8.5 billion in financial assistance to the businesses that were
taking the greatest toll due to the Coronavirus. The funding, as per the
government, was to be made available as soon as possible.

At
the time of writing, Credit
Suisse is exchanging hands
at 7.38 CHF in the stock market that translates
to an over 40% decline in 2020 so far. Its performance in 2019, on the other
hand, was reported mildly upbeat with an annual gain of around 20%. Share
prices were seen around 11.0 CHF in January 2019 while the stock closed the
last year at just over 13.0 CHF in December. Credit Suisse currently has a
market cap of 18.64 CHF with a price to earnings ratio of 5.52.

Advertisement