Arab Today, arab today swiss central bank hard hit by gold price fall
Last Updated : GMT 17:22:27
Arab Today, arab today
Arab Today, arab today

Swiss central bank hard hit by gold price fall

Arab Today, arab today

Arab Today, arab today Swiss central bank hard hit by gold price fall

Zurich - AFP

Switzerland's central bank said Monday it lost billions in 2013 as gold prices plunged and therefore could not pay dividends to the Swiss cantons for the first time in more than a century. The Swiss National Bank (SNB) has been dishing out dividends to the Swiss cantons ever since its creation in 1907, and to the Swiss Confederation since 1991. But on Monday the bank said neither would receive handouts this year, after provisional figures showed it would be reporting a loss of 9.0 billion Swiss francs ($9.9 billion, 7.3 billion euros) for 2013. It had lost far more on the value of its gold holdings, which shed 15 billion francs during a year when the price for the precious metal dropped by 28 percent. That deep loss was offset though by gains of 3.0 billion Swiss francs on the bank's foreign currency positions, and another increase of 3.0 billion on a stabilisation fund it put in place in 2008 to save Switzerland's largest bank, UBS, from collapse. But since SNB needed to put aside 3.0 billion Swiss francs as a provision for its currency reserves, it said it expected to end up about 12 billion francs in the red. "As this loss will be substantially larger than the 5.3 billion Swiss francs in the distribution reserve, the SNB cannot make a profit distribution," the bank explained. The loss does not come as much of a surprise since SNB already said in October that the value of its gold holdings had shrunk by 10.7 billion francs during the first nine months of the year. But the news that the bank would not be padding state and cantonal coffers this year did come as a blow and sparked worries of looming budget deficits. Last year, SNB reported a 6.9-billion-franc profit and redistributed one billion francs of its profit to the Swiss Confederation and cantons. This year, the country's 26 cantons, which resemble US states, stand to lose out on 667 million Swiss francs, according to Peter Hegglin, who heads an organisation of all the Swiss cantonal financial chiefs. "This is a shame, because many of the cantons are already suffering from financial difficulties," he told AFP, pointing out that SNB's contributions usually represent between 0.4 and 1.2 percent of cantonal budgets. At the federal level, the withheld cash could also translate into a small budget deficit. Bern had hoped to post a 121-million-franc surplus, but now that it will lose out on 333 million francs from the central bank, it could post a deficit of some 212 million francs, a finance ministry spokesman told AFP. He stressed though that in light of the 66 billion Swiss francs in expected revenues, the deficit was tiny. And in the case of an economic upswing, higher-than-expected tax revenues could easily compensate for the loss and put Switzerland back in the black. The SNB is set to announce its full results on March 7.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss central bank hard hit by gold price fall Arab Today, arab today swiss central bank hard hit by gold price fall

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today swiss central bank hard hit by gold price fall Arab Today, arab today swiss central bank hard hit by gold price fall

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday