In December 2014, the Swiss national Bank announced the introduction of negative interest rates. Since we live in a different world: he Who lends money, has to pay the borrower to ensure that he receives the money, the debtor will be compensated for the debt-to-do financially.
The Bank account of ordinary savers will not be affected by negative interest rates. In the future, could change that. This week, Credit Suisse announced that interest rates introduces high Swiss franc deposits of wealthy private customers Negatively. UBS had already announced in the summer, from November on Swiss franc Cash balances of more than two million, a negative interest rate of minus 0.75 percent to introduce.
Conservative savers are the undisputed losers of the ongoing interest rate policy Low. But there are also winners. One of them is the Federal President Ueli Maurer (68). The Minister of Finance, benefits from the fact that the Federal government must pay on its debt is less and less interest on debt.
state debt cost less
in 2006, when the debt of Switzerland reached their peak, the Federal government paid four billion Swiss francs in interest on debt. 2018 had to be spent “only” 1.1 billion Swiss francs.
Philipp Rohr, spokesman for the Federal Finance administration (EFV): “Around a third of these savings are sustainable, and the debt reduction explain. Two-thirds are due to the continuous decline of interest rates.”
that’s not enough: in the Meantime, the Federal government collects by debt, year after year, millions. The financial management has been created at the request of the Sunday view, an appropriate compilation. The bottom line is Bern has taken in recent years by negative interest rates 388 million Swiss francs.
Surprising: Already in 2011, the Federal government cashed in thanks to negative interest rates eleven million francs, long before the SNB has a negative level of interest rates. Philipp pipe from the financial management explains: “We issue weekly a so-called money market debt register claims with a maturity of three, six and twelve months. This reindeer since August 2011, negative.” The Federal government has already found, at the time, investors were willing to pay him for the storage of money in interest rates.
What is also reported in amazement: The highest revenue due to negative interest rates by the Federal 79 million in 2017. Since then, the income from negative interest rates to go back again easily: in 2018, there were 64 in the first half of 2019, some 30 million Swiss francs.
How come? Tube: “first, the outstanding volume of money market debt register claims was in the years 2016 and 2017 is higher than in the years 2018/2019. And secondly, the return was due to the greater demand in these years something negative.” Want to be called: 2017 and more investors than it is today, were ready to pay the Federal government for the debt-to-do were.
financial management: “We benefit,”
the question Remains: Are negative interest rates for Bern only a reason for joy? Or are there negative consequences? Financial management speaker tube: “As a big debtor, we benefit, of course, in principle, from decline and record-low interest rates.” The low level of interest expenditure would also increase the scope for spending in other areas.
The medal but also a downside: “The current level of interest rates is not least an expression of the extraordinary monetary policy measures to combat the strong Swiss franc and to prevent a deflationary spiral. A normalisation of interest rates would be a sign that the strength of the franc will be overcome and the economy is back on a sustainable growth path.”
The financial management would therefore prefer to return to a positive interest rate environment – even if this would be for the Federal with higher interest costs.