Federal Council lowers interest rates for COVID-19 credits
Bern, 20.03.2026 — During its meeting on 20 March 2026, the Federal Council decided to lower the interest rates for outstanding COVID-19 credits with effect from 31 March 2026. The interest rate will now be 0% for credits up to CHF 500,000 and 0.5% for credits exceeding CHF 500,000.
The COVID-19 Joint and Several Guarantee Act makes provision for the Federal Council to adjust the interest rates on COVID-19 credits in line with market developments, with effect from 31 March each year. When setting the interest rates, the Federal Council takes various factors into account, including the level of the SNB policy rate. Since 1 April 2025, interest of 0.25% has been payable on credits up to CHF 500,000 and 0.75% on credits exceeding CHF 500,000.
The SNB policy rate has been 0% since 20 June 2025. During its meeting on 20 March 2026, the Federal Council decided to lower the interest rates for COVID-19 credits. From 1 April 2026, the interest rate on credits up to CHF 500,000 will be 0%, and that on credits exceeding CHF 500,000 will be 0.5%.
With the COVID-19 credit programme, the federal government made it possible in 2020 to bridge coronavirus-related liquidity shortfalls for companies by means of state-guaranteed credits. COVID-19 credits should not be used for longer than necessary for this purpose. This is also in the interests of taxpayers. Taking partial repayments into account, CHF 1.7 billion of the original credit amount of CHF 16.9 billion is still outstanding. The credits must be repaid no later than 2028, or 2030 in cases of hardship.