(22.02.2024) As stipulated by law, the interest rates for COVID-19 credits are reviewed on 31 March each year by the Federal Council and adjusted to market conditions if necessary. Therefore, the Federal Council could potentially adjust the current interest rates of 1.5% for outstanding credits up to CHF 500,000 and 2% for those exceeding CHF 500,000 at the end of March.
When this form of loan was launched in March 2020, the interest rates were 0% for credits up to CHF 500,000 and 0.5% for those exceeding CHF 500,000. Reviews on 31 March 2021 and 2022 did not result in a rate adjustment for COVID-19 credits as the relevant interest rates were in negative territory. When setting the interest rates for COVID-19 credits, the Federal Council takes various factors into account, including the level of the Swiss National Bank (SNB) policy rate. This has been increased five times since summer 2022 and currently stands at 1.75%. Last year on 31 March, the Federal Council raised the interest rates for COVID-19 credits up to CHF 500,000 from 0% to 1.5% and for those exceeding CHF 500,000 from 0.5% to 2%, largely on account of the increase in the SNB key interest rate.
The Federal Council will again review the interest rates for COVID-19 credits at the end of March. Given the SNB’s current key interest rate, the possibility of an increase cannot be ruled out.
This business matter is under the responsibility of the State Secretariat for International Finance (SIF) at the Federal Department of Finance (FDF).
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Last modification 22.02.2024
