Switzerland registers the worst result in its financial history

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At the end of 2015, the National Bank of the Swiss country expects to record losses of 23,000 million Swiss francs (21,132 million euros), which translates into the most negative figures obtained by the central entity since its foundation in 1907.

Specifically, the Swiss issuing institute expects to record annual losses of 20,000 million Swiss francs (18,378 million euros) in relation to its positions in foreign currency, that is, in the foreign exchange market; meanwhile, the evolution of the price of gold will report to the entity losses of 4,000 million francs (3,675 million euros). By contrast, Switzerland's central bank estimates that it will make a profit of 1 billion Swiss francs (919 million euros) on its positions in Swiss francs.

Despite projected record annual losses, the institution has announced that it will draw on its distribution reserves to carry out the payment of a dividend of 15 Swiss francs per share and ensure the ordinary annual profit distribution of 1 billion Swiss francs between the cantons and the Central Government.

In this sense, it is important to remember that the distribution reserves of the Swiss central bank reached 27,500 million Swiss francs (25,270 million euros), which, after facing the distribution of dividends and the ordinary distribution of profits, will be reduced to 2,000 million Swiss francs (1,838 million euros), according to the agencies.

In addition, the bank closed 2014 with a net profit of 38.3 billion francs (35.197 million euros), although in 2013 it suffered losses of 9.1 billion francs (8,362 million euros), after which it decided not to pay dividends.

Budget problems

The Swiss National Bank, anticipating the announcement of the ECB (European Central Bank) debt purchase plan, decided on January 15, 2015 to abandon its minimum exchange policy of 1.20 Swiss francs per euro, in force since September 2011 , causing the sharp revaluation of the Swiss currency against the main currencies, particularly at its cross with the euro.

Along with this, it should be emphasized that “the bank is constituted as a special entity whose shares are listed on the standard domestic segment of the Swiss Stock Exchange. The majority shareholders of the institution are public entities, including the Swiss cantons and their respective cantonal banks ”, the experts add.

Finally, and according to its statutes, the entity is obliged to distribute two thirds of its profit among the cantons, "which raised an important controversy and budgetary problems when in 2013 the institution did not make this distribution for the first time after incurring losses" , they conclude.

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