The past years has been quiet remarkable for the Swiss government and their investments made in borrowing money, they are on record as having the lowest rate of interest in history and has saved the country and government billions. The Swiss government sold roughly SFr 122.6 million which is estimated to be worth $131.9 million US dollars. Over the past ten years, investors have seen the smallest return per cent, which essentially is no return on their money. They only saw .011 per cent on returns, which is close to nothing when it comes to a long term ten year investment.
Meanwhile, Switzerland’s neighbor Sweden did not face the same luck and returns when they made the investment. “Sweden sold SKr 3.5 billion, roughly $420 million of bonds due for repayment in 2019, at a yield of minus 0.0503 per cent, just one day before one of the most anticipated meetings of the country’s central bank.” This is according to a statement to the Financial Times. The government decided it was best to suspend debt spending after three months due to the reoccurring numbers which were hurting the economy recently. This is the first time since 2012 where these numbers were this low when it came to deposit rates, at an alarming .75 per cent.
Even with the other European nations struggling, Switzerland was able to pay a very now return on their debt investment due to the ten year plan they had set up previously. This low rate helped Switzerland rank as one of the top fifteen destinations to live, economy wise. Many of the residents are very happy in the way the economy is running and the direction their money is being invested.
For more Swiss financial and political news and updates, please visit Etienne Kiss-Borlase‘s official website.