Some Swiss banks pay their clients to borrowJuly 24, 2019 - 10:27 AMT PanARMENIAN.Net - Switzerland’s experiment with negative interest rates is beginning to take hold in the mortgage market, with some local lenders saying they’re effectively paying people to borrow money, Bloomberg reports. At minus 0.75%, Switzerland’s policy benchmark rate is the lowest of any G-10 central bank, and yields on the country’s 10-year bonds have been below zero since late last year. Yet while borrowing costs for homeowners have dropped, evidence suggests that so far mortgage rates stayed positive, as banks sought to pass the Swiss National Bank’s charge on overnight deposits on to their clients. For a select few, though, it seems the cheap money drive is getting through. “In individual cases, we grant short-term loans with zero or negative interest rates to institutional clients for financing with corresponding collateral,” Zuger Kantonalbank spokeswoman Carmen Wyss said. The topic of negative interest rates come to the fore again as central banks prepare to turn back on the stimulus taps. Banks have long complained about them, and UBS Group AG Chief Executive Officer Sergio Ermotti warned Tuesday that fresh easing could stoke asset bubbles. Newspaper Tages-Anzeiger, which was first to report the negative-rate loans, quoted a spokesman for the Grisons cantonal bank as saying they were sometimes granted to institutional borrowers whose financing needs were both large and short-term. Mortgage rates at the cantonal banks of Zurich, Bern and Geneva were still above zero, the newspaper said. Top stories Azerbaijani President Ilham Aliyev arrived in Moscow on April 22 to hold talks with Russian counterpart Vladimir Putin. Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". Partner news | SBP instant transfers now available from 190 Russian banks to Armenia To receive money from Russian banks, easywallet users need to go to their easywallet accounts. Armenia's Davit Chaloyan qualifies for Paris Olympics The Armenian boxer qualified for Paris Olympics after a series of successful bouts at the 2nd World Qualification Tournament. Lemkin Institute urges Armenia to respect people’s right to dissent The Lemkin Institute has urged the Armenian government to respect people’s fundamental human right to express their dissent. French-Armenian journalist returns to France after 41-day hunger strike Nicolian said on social media on Sunday, June 2 that he needs to improve his health in order to “continue the fight”. |