UBS sets aside over €700 million to repay Greensill investors
- UBS takes a hit of over €700 million to repay investors affected by Greensill collapse.
- The provision is made to rescue Credit Suisse from the aftermath of the collapse.
- Profits of UBS are expected to remain unaffected by the repayment provision.
UBS has allocated €900m to assist former Credit Suisse customers affected by the Greensill Capital collapse. Investors can recoup 90% of their funds until July 31 based on the net asset value of the funds in February 2021. This move will not impact UBS profits and allows for an early exit from fund investments. UBS inherited Credit Suisse's troubled Supply Chain Finance Funds and has been working to recover assets since acquiring the lender last year. The collapse of Greensill Capital, which offered supply chain finance deals, led to Credit Suisse freezing funds worth $10bn. The collapse also sparked a lobbying scandal involving former UK prime minister David Cameron. UBS's repayment offer aims to provide certainty and financial recovery for fund investors without significant impact on its financial results.