Switzerland Doubles Aid for Virus-Hit Businesses to $41 Billion

Switzerland doubled the amount of state credit guarantees for businesses to 40 billion francs ($41 billion) as officials around the world race to contain damage to the economy inflicted by the pandemic.

The initial tranche of government-backed loans, made available last month, met with strong demand and government ministers pledged to increase liquidity to firms grappling with a fall off in demand due to the coronavirus outbreak if needed. As of April 2, more than 76,000 credit agreements worth an estimated 14.3 billion francs have been concluded.

The government has shut down non-food shops, restaurants, theaters and gyms to control the coronavirus epidemic. The economy is expected to contract this year and more companies have already asked to participate in the government’s reduced-hour ‘Kurzarbeit’ program than during the 2008 global financial crisis.

According to UBS Group AG, the federal government could spend about 145 billion francs without jeopardizing its top-notch credit rating.

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Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editors responsible for this story:
Fergal O’Brien at fobrien@bloomberg.net

Jan Dahinten

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