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 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". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. Macron says France commemorates 109th anniv. of Armenian genocide Today France commemorates the 109th anniversary of the Armenian genocide of 1915, Macron says. Freedom House concerned by mounting reports of police violence in Armenia Freedom House urged Armenian authorities to investigate this pattern of excessive force and inhumane treatment. |