Swiss central bank fund pays off UBS rescue
ZURICH (AFP) - The Swiss National Bank (SNB) said on Friday that a massive loan to rescue UBS bank during the financial crisis had been paid off and UBS could now repurchase its once toxic assets.
SNB said its so-called stabilisation fund, or StabFund, had by Thursday completely paid off the last portion of a US$25.8-billion (S$32.8-billion) loan issued in 2008 to save UBS, which was among the global banks hardest hit by the crisis.
The completion of the final payment of 1.2 billion Swiss francs (S$1.63 billion) means that UBS, the biggest Swiss bank, will now be permitted to go ahead with its plan to repurchase once-toxic assets, central bank spokesman Walter Meier told AFP.
The price will be set by independent agents who will assess the current value of the assets, the central bank said in a statement.