Credit Suisse shares are up 23% on the announcement of a loan from the Swiss National Bank.

Credit Suisse shares jumped more than 30% at the start of trading on Thursday after the bank announced plans to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

Although the stock’s gain slowed slightly in early trading, it was still up 23% by 8:48 a.m. London time.

Late Wednesday, the bankrupt lender stated that it would exercise its option to borrow from the Swiss central bank under a covered loan facility and a short-term liquidity facility.

In a statement issued Wednesday, the Swiss National Bank and the Swiss Financial Market Supervisory Authority stated that Credit Suisse “satisfies the capital and liquidity requirements imposed on systemically important institutions.”

The bank also offered to buy back approximately 3 billion Swiss francs in debt, representing 10 US dollar-denominated senior debt instruments and four euro-denominated senior debt securities.

“These steps indicate strong action to strengthen Credit Suisse as we continue our strategic transformation to create value for our clients and other stakeholders,” said Credit Suisse CEO Ulrich Koerner in a statement issued on Wednesday.

“We applaud the [Swiss National Bank] and FINMA as we undertake our strategic transition. My team and I are committed to moving quickly to offer a simpler, more focused bank centered around client needs.”

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Credit Suisse shares, like that of many other European banks, began to fall at the start of the week on fears of contagion following the failure of Silicon Valley Bank.

The Swiss bank’s losses widened on Tuesday when it revealed in its delayed annual report that a “significant weakness” in its financial reporting in 2021 and 2022 had been discovered, albeit it stated that this did not impair the accuracy of the bank’s financial accounts.

Credit Suisse’s shares fell to a new all-time low for the second day in a row on Wednesday after the Saudi National Bank, a major investor, indicated it would not spend any additional money owing to regulatory constraints.

Inflation rose 0.4% in February, as forecast, and is up 6% year on year.

The Saudi National Bank purchased a 9.9% share in Credit Suisse as part of a $4.2 billion capital raise to fund a huge strategic revamp aimed at enhancing investment banking performance and addressing a slew of risk and compliance issues.

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