(Adds details, background, comment)
ZURICH, April 19 (Reuters) - The Swiss government said
commitments to the Swiss National Bank and UBS to ease the
takeover of Credit Suisse will not be affected by parliament's
rejection of 109 billion Swiss francs ($121 billion) in
emergency credits and guarantees.
In a largely symbolic vote, these commitments were last week
rejected twice by Switzerland's lower house of parliament.
The Swiss cabinet acknowledged parliament's decision at its
meeting on Wednesday, but made clear its commitments would not
be affected as they had binding approval via emergency law.
"Parliament debated these credits on the premise that a
rejection would have no legal effect on the Confederation's
emergency commitments made to the SNB and UBS," it said.
"The Federal Council shares this legal opinion," the
government said in a statement.
Switzerland's tradition of consensus politics has taken a
battering after the government used an emergency law to push
through a state-backed takeover of Credit Suisse by UBS , side-lining parliament.
The defeat is a blow for the government in an election year
and makes it harder to build broad support among the population
for the biggest corporate rescue in Swiss history.
If non-approval of the credits by Parliament were to result
in the government having to fully or partially reverse
commitments already undertaken, the cabinet said its ability to
act in times of crisis would be significantly impaired.
Still, the government said it would take parliament's
position into account in its future work and decisions.
"On the one hand, this applies to the negotiations with UBS
on the guarantee contract," it said, adding: "But only to the
extent that this does not jeopardise the takeover of Credit
Suisse by UBS".
($1 = 0.8998 Swiss francs)
(Reporting by John Revill and Miranda Murray; Editing by
Alexander Smith)
Messaging: john.revill.thomsonreuters.com@reuters.net))
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