27 November 2008
GENEVA – A company created by Swiss authorities to hold illiquid assets of embattled bank UBS will be based in Switzerland rather than the Cayman Islands as first planned, the Swiss National Bank said Wednesday.
"Thanks to the support of the authorities of the Swiss Confederation and the canton of Bern, the SNB has succeeded in drawing up a solution comparable with the structure originally planned for the Cayman Islands within a very short period of time," said the SNB in a statement.
In October, Swiss authorities unveiled a rescue package worth almost USD 60 billion (CHF 71.5 billion) to help the bank isolate its illiquid assets.
Under the deal, a special-purpose vehicle was created to hold these assets.
But the authorities’ intention to hold the vehicle in the Cayman Islands sparked sharp criticism.
"The choice of the Cayman Islands is really unfortunate given that we are battling tax evasion," said the Socialist Party then.
[AFP / Expatica]