Record loss of the SNB – cantons will probably have to make up the SNB surcharge – News

Many cantons are counting on a payout from the Swiss National Bank in their budgets. With today’s loss, however, the grant is likely to be canceled this year.

The Swiss National Bank (SNB) made a loss of CHF 142 billion in the first nine months of this year. Above all, price losses on shares and bonds were responsible for the record loss. The distributions to the Confederation and the cantons are therefore severely endangered.

In previous years, the federal and cantonal governments and cantons rained money with the annual results of the SNB. Only once in the last 30 years was there no subsidy at all. The cantons seem to have adjusted to the fat years.

Majority of cantons expect distribution

Most cantons confirm to SRF News that they have budgeted distributions for 2023. Only four cantons do not do this. Overall, the cantons are expecting distributions of more than two billion francs.

The example of Thurgau shows what the failure to pay out means for the cantons: Here you would have to release reserves – if the expected millions don’t come. But that is not a permanent solution, says Thurgau government councilor Urs Martin. “In the medium term, we would then have to be financially secure on the books.”

Without SNB money, individual cantons would even have to implement savings measures next year – or postpone tax cuts. One does not want to give up hope of the SNB millions in blessing just yet. As usual, the National Bank itself emphasizes that the accounts will be settled at the end of the year.

No miracle in sight

But UBS chief economist Daniel Kalt is dampening expectations. “A small miracle would have to happen on the financial markets,” he says. The SNB would have to make a profit of at least CHF 50 billion by the end of the year so that it could pay out the minimum contribution of CHF 2 billion. “But it doesn’t look like that at the moment.”

The hole in the SNB coffers is unlikely to be filled. Fears of a recession are causing stock markets to tumble, higher interest rates are causing bonds to lose value and the strong Swiss franc is also causing problems for the National Bank. Accordingly, it is not surprising that several cantons today confirm that they want to go over the books again with the budget.