ZURICH (Reuters) – Debt ranges in america and Europe are a danger for worldwide monetary stability and for Switzerland, Swiss Finance Minister Karin Keller-Sutter stated in a newspaper interview revealed on Saturday.

In an interview with Swiss day by day Blick, Keller-Sutter extolled Switzerland’s “disciplined” funds, which she stated had enabled the nation to take care of the financial challenges posed by the COVID-19 pandemic and Russia’s invasion of Ukraine.

In contrast, different international locations are “so indebted they’re hardly capable of act any extra”, she stated, giving France for instance.

“Or check out America. That is a time bomb. The mini-crash on the inventory markets initially of August was a warning shot,” the minister was quoted as saying.

“It was an expression of traders’ concern of a recession. Debt ranges within the U.S. and Europe are a danger to worldwide monetary stability and a danger for Switzerland,” she added.

Keller-Sutter additionally mentioned a authorities proposal to make Swiss financial institution UBS maintain extra capital within the wake of its acquisition of former rival Credit score Suisse following its collapse final 12 months.

She defended the extra capital necessities as needed to guard Switzerland from one other banking meltdown.

UBS CEO Sergio Ermotti has criticised the proposal, and he or she was requested whether or not she was in contact with him about it, saying:

“No, I have not been involved with him any extra. That is now a traditional political course of.”

The paper additionally requested what she considered hypothesis that UBS may shift its headquarters overseas if it felt circumstances in Switzerland have been not proper for it.

“The Federal Council (cupboard) believes it is good for the financial system to have a big Swiss financial institution. However the financial institution should determine for itself the way it needs to place itself.”

UBS has stated repeatedly it’s dedicated to Switzerland.