Credit Suisse costs for Swiss: up to CHF 12,500 per person
The cost to Switzerland of maintaining its reputation as a financial center could amount to 12,500 Swiss francs (12,560 euros) for each person in the country.
To secure the emergency sale of Credit Suisse Group AG to UBS Group AG, the Swiss government has pledged to provide up to CHF 109 billion – a huge burden for the country of just 8.7 million people.
There is also a CHF 100 billion guarantee from the Swiss National Bank, which is not covered by a state guarantee, according to the deal announced on Sunday evening.
The total of 209 billion francs corresponds to about a quarter of Swiss gross domestic product and exceeds the entire European defense spending in 2021. The cost of the largest corporate rescue in the Confederation to date could be more than three times as high as the 60 billion franc rescue of the UBS in 2008.