Arab Today, arab today swiss central bank hard hit by gold price fall
Last Updated : GMT 11:26:05
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.

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 Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
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