UBS Ends Credit Suisse Loss-Protection Pact, Liquidity Backstop

By Adria Calatayud

UBS Group said it has terminated a 9 billion Swiss franc ($10.27 billion) loss-protection agreement and a CHF100 billion public-liquidity backstop guaranteed by the Swiss government that were put in place at the time of its takeover of troubled rival Credit Suisse.

The Swiss banking giant said Friday that the decision follows an assessment of Credit Suisse's noncore assets that were covered by the agreement and the funding situation at Credit Suisse entities and the group overall.

Credit Suisse also repaid an emergency-liquidity-assistance loan of CHF50 billion to the Swiss National Bank as of Thursday, with a risk premium of CHF476 million, UBS said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

08-11-23 0121ET