Credit Suisse: Swiss government agrees €9.2bn loss guarantee deal with UBS

New deal removes one of the final blockages to the €3.3bn rescue takeover by UBS of Credit Suisse Group

Assets to be covered includes primarily loans, derivatives, legacy assets and structured products from Credit Suisse’s non-core unit. Picture: Michael Buholzer/Keystone/AP

UBS sealed an agreement with the Swiss government to cover 9bn francs (€9.2bn) of losses it could incur from the rescue of Credit Suisse Group, clearing the last major hurdle to closing the historic takeover.

The accord was signed on June 9 and will cover a specific portfolio of Credit Suisse assets, corresponding to about 3% of the merged banks’ combined assets, the government said in a statement. That represents about 44 billion francs.