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SWISS repays Covid government guaranteed loans early

Summary:
On 9 June 2022, Switzerland’s government announced that SWISS had repaid the loans the Confederation had guaranteed at the end of May 2022, ending the arrangement with no loss of public funds. After the Covid-19 pandemic severely impacted the aviation industry, Switzerland’s Federal Council decided in spring 2020 to provide support in the form of guarantees to the airlines SWISS and Edelweiss to bridge liquidity shortfalls. Banks granted SWISS and Edelweiss a credit line of up to CHF 1.5 billion with a term of five to seven years. The Confederation then guaranteed 85% of the default risk. The airline repaid the credit in full and ahead of schedule at the end of May 2022. The related contracts were definitively terminated on 7 June 2022. As a result, SWISS and Edelweiss no longer

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On 9 June 2022, Switzerland’s government announced that SWISS had repaid the loans the Confederation had guaranteed at the end of May 2022, ending the arrangement with no loss of public funds.

SWISS repays Covid government guaranteed loans early

After the Covid-19 pandemic severely impacted the aviation industry, Switzerland’s Federal Council decided in spring 2020 to provide support in the form of guarantees to the airlines SWISS and Edelweiss to bridge liquidity shortfalls. Banks granted SWISS and Edelweiss a credit line of up to CHF 1.5 billion with a term of five to seven years. The Confederation then guaranteed 85% of the default risk.

The airline repaid the credit in full and ahead of schedule at the end of May 2022. The related contracts were definitively terminated on 7 June 2022. As a result, SWISS and Edelweiss no longer have any credit lines guaranteed by the state. Over the life of the arrangement the state received interest and fee revenue totalling around CHF 50 million as compensation for the risk taken.

Finance Minister Ueli Maurer said that he is grateful to SWISS for their constructive cooperation. In his view, good relations and mutual trust have paid off.

More on this:
Government press release (in French) – Take a 5 minute French test now

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