The Federal Council has decided - the interest rates for Covid-19 loans will be increased as of March 31, 2023

At its meeting on March 29, 2023, the Federal Council decided to increase interest rates for outstanding Covid-19 loans as of March 31, 2023. Loans of up to 500,000 francs now have to be paid 1.5 percent and for loans over 500,000 francs 2 percent. The Federal Council is thus taking interest rate developments into account.

The Covid-19 Solidarity Guarantee Act requires the Federal Council to adjust the interest rates on Covid-19 loans to market developments as of March 31. When financial aid was launched in March 2020, interest rates were 0.0 percent for loans below 500,000 francs and 0.5 percent for loans over 500,000 francs. The reviews in 2021 and 2022 did not result in an adjustment of interest rates as the relevant interest rates were in negative territory.

When setting interest rates for Covid-19 loans, the Federal Council takes into account, among other things, the level of the SNB key interest rate. This is now 1.5 percent. At its meeting on March 29, 2023, the Federal Council decided to increase interest rates on Covid-19 loans: from April 1, 2023, interest of 1.5 percent will be due on loans of up to 500,000 francs, and 2 percent on loans over 500,000 francs.

The adjustment of interest rates provides an incentive not to claim Covid-19 loans longer than necessary. This is in line with both the original purpose of the credit program — to bridge corona related liquidity bottlenecks — and the interest of taxpayers in keeping credit defaults as low as possible.

More about this on the official website of the federal government
https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-94027.html#:~:text=An%20seiner%20Sitzung%20vom%2029.%20M%C3%A4rz%202023%20hat%20der%20Bundesrat,ein%20solcher%20von%202%20Prozent

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