SWISS repays government-guaranteed Covid loans early

On June 9, 2022, the Swiss government announced that SWISS had repaid the loans that the Confederation had guaranteed at the end of May 2022, ending the arrangement without loss of public funds.

After the Covid-19 pandemic hit the aviation industry hard, the Swiss Federal Council decided in spring 2020 to provide support in the form of guarantees to the airlines SWISS and Edelweiss to fill the liquidity gap. The banks granted SWISS and Edelweiss a credit line of up to 1.5 billion francs with a duration of five to seven years. The Confederation then guaranteed 85% of the default risk.

At the end of May 2022, the airline repaid the credit in full and ahead of schedule. The corresponding contracts were definitively terminated on June 7, 2022. As a result, SWISS and Edelweiss no longer have state-guaranteed credit lines. Throughout the duration of the arrangement, the State received income from interest and royalties totaling approximately 50 million francs in compensation for the risk taken.

Finance Minister Ueli Maurer said he was grateful to SWISS for its constructive cooperation. According to him, the 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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