The Swiss National Bank (SNB) announced on Friday that Swiss Bank UBS (UBS) has paid off its loan.The loan was intended for UBS as a stabilization fund to bail itself out. UBS nearly collapsed during the financial crisis in 2008.
SNB further stated that UBS can now repurchase their former assets which were worth US$38.7 billion five years ago.The said assets have also recovered from the crisis and are now profitable.
UBS is committed to repurchase all of its assets.The said assets have to undergo the process of asset valuation by independent agents before UBS repurchasing can be completed, according to a statement made by SNB.
The full procedure is likely to take a period of three months, as reported by Reuters. UBS will then have to repay SNB US$1 billion plus half of the net asset value that would exceed this amount. By the end of 2012, the fund's equity was valued at US$5.5 billion.
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