Swiss Franc Debt Relief: New Interventions on the Horizon

Borrowers with Swiss franc loans are calling for simplified conditions to join the out-of-court settlement mechanism, as economic authorities work on solutions to address their issues. The framework for inclusion in this mechanism has changed since the previous leadership of the Ministry of Finance (MoF), which had previously announced an intervention by the first half of 2025 specifically targeting Swiss franc borrowers. A representative of these borrowers recently stated that the out-of-court settlement mechanism is practically inaccessible for most borrowers, as one must reach absolute financial deadlock to qualify. Their association has submitted specific proposals to the MoF. Approximately 10,000 citizens face enormous debts far exceeding their original loan amounts due to fluctuations in exchange rates with the euro. The MoF is focused on finding a solution for these borrowers. According to unconfirmed reports, the MoF is exploring ways to make it easier for ‘red’ Swiss franc loans to be included in the settlement mechanism’s regulations, possibly through an expansion of criteria or changes to the algorithm of the mechanism to facilitate acceptable resolutions for servicers and banks. Based on MoF announcements, those who took out Swiss franc loans and now face overdue debt should expect legislative interventions by summer.