ZURICH: The Swiss National Bank (SNB) and the Finance Ministry announced a new framework for the central bank's annual dividend to its biggest shareholders as it seeks to shore up its capital base after incurring a record loss in 2010 due to interventions to weaken the franc.
The Swiss Finance Ministry said on Monday the SNB had agreed to distribute 1 billion Swiss francs annually to the Confederation and Switzerland's 26 cantons (states) in the future, providing the distribution reserve is positive.
The new agreement will cover the financial years 2011 to 2015 and replaces a 2008 agreement to distribute 2.5 billion Swiss francs of profit annually until 2017.
Switzerland's 26 cantons are the SNB's biggest shareholders, and the SNB has warned repeatedly that they may not receive their regular dividend this year because the SNB's priority is to build up its reserves.
The Finance Ministry said the timing of the next payment depends on the future developments in financial markets.
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