Swiss authorities reveal costs of Credit Suisse lifeline

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ZURICH: Switzerland’s 250 billion Swiss franc lifeline thrown to Credit Suisse and UBS could cost them more than 10 billion francs (US$10.95 billion) in interest if used in full, Reuters calculations based on official data showed.

Credit Suisse will pay an interest rate equal to the current Swiss National Bank’s policy rate of 1.5% plus 0.5% for access to the emergency liquidity assistance (ELA) scheme, the central bank said today.

The facility requires loans to be covered by collateral in the form of mortgages and pledged securities.

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