ZURICH (Reuters) – Debt ranges in the USA and Europe are a threat for worldwide monetary stability and for Switzerland, Swiss Finance Minister Karin Keller-Sutter mentioned in a newspaper interview printed on Saturday.
In an interview with Swiss each day Blick, Keller-Sutter extolled Switzerland’s “disciplined” funds, which she mentioned had enabled the nation to cope with the financial challenges posed by the COVID-19 pandemic and Russia’s invasion of Ukraine.
Against this, different international locations are “so indebted they’re hardly capable of act any extra”, she mentioned, giving France for example.
“Or check out America. That is a time bomb. The mini-crash on the inventory markets firstly of August was a warning shot,” the minister was quoted as saying.
“It was an expression of traders’ worry of a recession. Debt ranges within the U.S. and Europe are a threat to worldwide monetary stability and a threat for Switzerland,” she added.
Keller-Sutter additionally mentioned a authorities proposal to make Swiss financial institution UBS maintain extra capital within the wake of its acquisition of former rival Credit score Suisse following its collapse final 12 months.
She defended the extra capital necessities as essential to guard Switzerland from one other banking meltdown.
UBS CEO Sergio Ermotti has criticised the proposal, and she or he was requested whether or not she was in contact with him about it, saying:
“No, I have not been in touch with him any extra. That is now a standard political course of.”
The paper additionally requested what she thought of hypothesis that UBS may shift its headquarters overseas if it felt situations in Switzerland have been now not proper for it.
“The Federal Council (cupboard) believes it is good for the economic system to have a big Swiss financial institution. However the financial institution should determine for itself the way it desires to place itself.”
UBS has mentioned repeatedly it’s dedicated to Switzerland.
