Dice form the German word “Zinsen” (“interest rates”) on increasing high stacks of coins.
finance At the end of March, the Federal Council increased the interest on the Covid 19 loans to 1.5 or 2 percent (loans over CHF 0.5 million). The canton of St.Gallen is now catching up with the federal government and is increasing the interest rates for loans from the cantonal programs to 1.5 percent. The adjustment will take effect on June 1st. In March 2023, the Swiss National Bank (SNB) increased the key interest rate. Now the St.Gallen government, like the federal government, has redefined the interest rates for loans. The interest rate will be adjusted uniformly to 1.5 percent as of June 1 on both the loans secured by joint and several guarantees from the “Supplementary loans as a result of the coronavirus” program and the loans from the “Hardship program”. The interest on the loans now corresponds to the SNB key rate. With this adjustment, the incentive is created not to claim the credit longer than necessary. On the other hand, any misguided incentives should also be counteracted with an interest rate in line with the market. The government’s goal is to keep the default risk from these loans for the canton as low as possible. The repayment modalities will not change for the borrower.
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2023-05-26 21:52:32
#Rate #hike #Covid19 #loans
