Credit Suisse announced this Thursday that it has borrowed 50,000 million Swiss francs (about 50,600 million euros) from the Swiss central bank. “preventively strengthen its liquidity”, according to the EFE agency. The bank, which had its blackest day in the stock market on Wednesday, suffered a collapse never seen in its 167-year history, losing a quarter of its value in the stock market, bringing its shares to a historical low, below two Swiss francs. He said that it brought down other European banking values.
“Credit Suisse takes decisive measures to preventively strengthen its liquidity It plans to use the option to borrow under a Secured Loan Facility of up to CHF 50 billion ($54 billion) from the Swiss National Bank (SNB) and a short-term liquidity facility fully guaranteed by high-quality assets. Earlier on Thursday morning, the organization announced “Credit Suisse International’s offers to repurchase certain senior debt securities from OpCo for up to approximately CHF 3,000 million ($3.2 billion) in cash.”
Swiss National Bank offers liquidity
The Swiss National Bank (SNB) said on Wednesday it would provide liquidity to Credit Suisse if needed., but make sure that this bank meets the stringent liquidity and capital requirements required by all Swiss financial institutions to guarantee its stability. The bank also announced that it is offering a cash auction in connection with ten USD denominated primary debt securities with a total value of up to $2.5 billion.
At the same time, Credit Suisse reports a separate cash takeover offer in conjunction with four euro-denominated senior debt securities with a total value of up to €500 million. Both offerings are subject to various conditions set forth in the relevant public offering minutes. Bids will expire on March 22, 2023.
“Transactions are consistent our proactive approach to managing our overall debt composition and optimizing interest expense and it will allow us to leverage current levels of trade to repay debts at attractive prices,” he said.
distrust of management
Credit Suisse – was hit hard by distrust of its management and the banking system in general. Three banks went bankrupt in one week in the USA– asked the SNB and the Swiss Financial Market Supervisory Authority (FINMA) to issue a definitive support statement to calm the markets the previous day.
Both institutions issued a joint statement despite the problems in the financial sector in the United States. “No indication of contamination risk for Swiss establishments”. Europe’s major stock markets suffered another financial-led panic on Wednesday, the second this week as Credit Suisse’s major shareholder refused to raise more capital.
Milan fell 4.61%, Madrid 4.37%; London, 3.83%; Paris, 3.58%; Frankfurt, 3.27%; and the Euro Stoxx 50 index, which groups the largest listed companies, is 3.46%. In any case, these are the biggest declines so far this year. Wall StreetFor its part, it closed in mixed territory and its main indicator, Dow Jones Industrials, lost 0.87% in a freshly volatile day, impacted by the decline in New York Parke’s Credit Suisse stock.
Nikkei, the main index of the Tokyo Stock Exchange, Dropped 2% at the opening of the session this ThursdayIt was also affected by the collapse of European markets for fear of a financial crisis after two American banks went bankrupt.