© Reuters. FILE PHOTO: Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland, March 20, 2023. REUTERS/Denis Balibouse/File Photo
ZURICH (Reuters) -UBS expects to finalize its agreement with the Swiss government to cover up to 9 billion Swiss francs ($9.92 billion) in losses from its emergency takeover of Credit Suisse by June 7, the Swiss bank said in a regulatory filing published on Tuesday.
“UBS Group AG (SIX:) expects that the Loss Protection Agreement will be finalized by June 7, 2023,” a filing with the U.S. Securities and Exchange Commission said.
Under the takeover of Credit Suisse, orchestrated by Swiss authorities, Bern agreed to shoulder up to 9 billion francs in losses after UBS agreed to cover the first 5 billion francs in losses.
“Any further loss guarantee exceeding CHF 14 billion, which was not included as part of the Special Ordinance, requires a separate legal basis in the form of a parliamentary approval in the ordinary legislative procedure as well as the commitment credit,” the SEC filling said.
The government agreement is one of the last steps UBS needs to take before it can officially close the acquisition of its rival.
The SEC document, which was dated June 5, reiterated that the UBS expects to complete the deal in the second quarter of 2023. The bank said on Monday it expects to seal the takeover as early as June 12.
($1 = 0.9075 Swiss francs)
