Credit Suisse requests 45 billion euros from the central bank as a loan

Credit Suisse announces its intention to access the Covered Loan Facility of the Swiss National Banka and a short-term liquidity line for a total of approximately 50 billion francs or approximately 45 billion euros. This additional liquidity would support Credit Suisse's core businesses and clients, as it is taking the necessary steps to create a simpler, more client-focused bank.

Credit Suisse also announced that it is conducting a cash tender offer of ten US dollar-denominated senior debt securities for a total consideration of up to $2.5 billion. Simultaneously, Credit Suisse is also announcing a separate cash tender offer for four euro-denominated senior debt securities for a total consideration of up to €500 million. Both offers are subject to various conditions, as set out in the respective offering memorandums. The offers will expire on March 22, 2023, subject to the terms and conditions set forth in the offer documents. Operations are consistent.

So Credit Suisse is turning to the central bank to be able to overcome a crisis of confidence and liquidity that threatened the company's continuity. In fact, the premiums of the CDS, the insurance on the bank's securities, had skyrocketed yesterday, showing how the institute was at high risk

Now it remains to be seen how the ECB will behave in the face of this unexpected credit crisis also caused by rate increases that are too close and, frankly, a little unreasonable. It seems that Lagarde wants to continue with the rate increases which would give a signal of lack of interest in the robustness of the European credit system.

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The article Credit Suisse is asking the Central Bank for 45 billion euros as a loan comes from Scenari Economici .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/credit-suisse-chiede-45-miliardi-di-euro-alla-banca-centrale-come-prestito/ on Thu, 16 Mar 2023 09:00:26 +0000.