The Case of the Rescue of a Swiss, Former Sovereign, Financier Credit Suisse Group vividly recalls what happened about fifteen years ago with Lehman Brothers in USAagain raising the question of whether there will finally be a big bank, because of the size, can not stop working. Yesterday, the Swiss authorities who organized the rescue of CS and its acquisition UBSdisclosed the amount of the price, which reaches 250 billion. Swiss francs. When fully used, they will bring the country more than 10 billion francs per cent, according to Reuters, which also made the corresponding calculations and which are based on official data. Credit Suisse will pay interest rate equal to the current rate of the Swiss central bank, 1.5%, plus 0.5% to access the Emergency Liquidity Assistance (ELA) program. This mechanism requires loans to be secured by mortgage loans and guaranteed securities.

As part of the measures announced alongside the authorities’ planned takeover of Credit Suisse by rival UBS, the two banks also gained access to additional 100 billion francs (ELA+) liquidity assistance. This assistance from the central bank is provided to banks at an interest rate of 3% plus the base rate.

In addition, Credit Suisse has gained access to a 100 billion franc state liquidity fund, for which it must pay a risk premium of 3%, equally divided between the Swiss central bank and the government. In addition, Credit Suisse owes the government a 0.25% commitment premium for the liquidity fund. The conditions offered to the above Swiss banks are improved and more favorable compared to other rescue companies. In particular, their lending terms are more favorable than rates 4-8% above the key rate of the Swiss central bank, which were provided last year to the country’s electricity suppliers under an emergency state credit line of 10 billion francs.