Fifa plays bank – billions from Fifa for Swiss communities – News

Bern received loans worth 1.8 billion from Fifa. But other communities have also received funds. Legally unproblematic – but now there is resistance.

Borrowing money – actually nothing out of the ordinary. But if the lender is the world football association Fifa, then you take a closer look. This was the case for the two Bernese city parliamentarians Milena Daphinoff (Die Mitte) and Florence Schmid (Jungfreisinn). In the city administration’s annual accounts, they discovered that Bern had received millions in loans from Fifa. 45 million in 2021, 158 million in 2022, five tranches, each for three months.

For Daphinoff, this practice in the left-green city of Bern is incomprehensible: “I find it extremely shocking, even scandalous. We have heard so many corruption allegations about Fifa in recent years.” It is not possible for the city to borrow money there to finance the “oasis of well-being” in Bern. For Florence Schmid, these loans are a symbol of the clammy city of Bern: “Apparently the debt situation is so bad that Bern even has to borrow money from Fifa.”

I find it extremely shocking, even scandalous. We have heard so many corruption allegations about Fifa in recent years.

The city itself published the full scope of its FIFA loans in a statement today. The sums are amazing. Since 2017, the city of Bern has received financing totaling CHF 1.8 billion from Fifa, in 35 tranches, all of which are short-term. The money was divided into loans and interest rate optimization vehicles.

Why does the city need money from Fifa?

But why is the city borrowing money from Fifa? Finance Director Michael Aebersold says that the administration must be liquid at all times: “We have tax receipts three times a year and have to take out short-term loans in between.” This is because the city’s financial cushion is apparently not sufficient to always cover all costs.

Moral questions about the donor have not played a role so far. Bern and Fifa concluded the financing via the Loanboox loan platform. Requirements: The lender must be in Switzerland and issue the loan in Swiss francs. “And so far we’ve decided that we’ll take the cheapest offer,” says Aebersold. There are no other criteria. Apparently, business with Fifa was going well: since 2017, the city of Bern has taken in CHF 3.1 million. This is because she received money for the loans due to the negative interest rates.

Legally Allowed Process

Legally, Fifa is apparently allowed to grant loans. Tobias Lux from the Financial Market Authority Finma writes: “The granting of credit or loans is possible without a permit.” On the other hand, companies would generally need to be subject to the Money Laundering Act if they granted credit or loans on a larger scale. But this rule does not seem to apply to Fifa. One is not subject to the Money Laundering Act, the association writes today on request, without giving reasons for this.

Credits or loans can be granted without a permit.

But what about morale – should a city borrow money from Fifa? Michael Aebersold admits that the World Cup in Qatar and the associated issues of human rights and corruption put things in a new light. “But Fifa has not yet been legally convicted. It’s also important for me to know that the money doesn’t come from just any suitcase, but is transferred from Swiss bank to Swiss bank.”

City code of ethics

In the eyes of Milena Daphinoff and Florence Schmid, the city must react: “In a push with the FDP, I will demand an ethics code for the city,” says Daphinoff. She expected the city to have governance rules that apply to borrowing. Such rules are needed now. Florence Schmid also misses a “moral compass” when it comes to loans.

At best, the finance director comes before them. Michael Aebersold wants to have himself checked whether the city should still accept Fifa funds or whether it should end up on a blacklist. “But the decision must not be arbitrary. We must then also have arguments based on suspicions.”