UBS AG to pay back Swiss National Bank for bailout fund value
The largest bank in Switzerland, UBS AG, had entered into an agreement to buy back the fund for bad credit assets set up by the Swiss central bank back in 2008. This fund was created as part of the bank's bailout initiative.
UBS AG would pay out USD3.8 billion and this price would be the correspondent contractual share in the fund's equity by the end of September. According to a statement released last Friday, under the terms of the agreement, UBS would pay the Swiss National Bank USD1 billion plus 50% of the fund's remaining value. By 2012's end, the amount due SNB had reached USD3.27 billion under the given formula.
According to the statement released by the Swiss National Bank, "The StabFund based its work on the intrinisc values of the assets, which were calculated from the future cash flows to be expected. When the market situation was good, assets were sold rapidly, while restraint was exercised when market setbacks were experienced."