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Credit Suisse to borrow up to $53.7bn to shore up group after stocks dip

The Switzerland government last week promised lawmakers a full report within a year looking at the factors behind Suisse's downfall. (AFP)
  • Credit Suisse, hit by a series of scandals in recent years, saw its share price plummet Wednesday after the Saudi National Bank declined to inject more money into the group
  • In February 2021, Credit Suisse shares were worth 12.78 Swiss francs, but since then, the bank has endured a barrage of problems that have eaten away at its market value

Zurich, Switzerland: Credit Suisse announced Thursday that it would borrow up to 50 million francs ($53.7 billion) from the Swiss central bank to reinforce the group after its shares plunged.

In a statement, the bank said it was also making buyback offers on about $3 billion worth of debt.

“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” CEO Ulrich Koerner said in the statement.

“My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”

Credit Suisse, hit by a series of scandals in recent years, saw its share price tumble off a cliff Wednesday after the Saudi National Bank declined to inject more money into the group.

Its shares fell more than 30 percent before regaining some ground to end the day’s trading down 24.24 percent at 1.697 Swiss francs.

In February 2021, Credit Suisse shares were worth 12.78 Swiss francs, but since then, the bank has endured a barrage of problems that have eaten away at its market value.

Wednesday’s plunge also came amid fears of contagion brought on by the failure of the US-based Silicon Valley Bank.

Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis.