The fund would ensure short-term liquidity for small- and mid-sized businesses in Switzerland to help weather the COVID-19 pandemic, according to Swiss outlet «Handelszeitung» (in German, behind paywall). The outbreak is expected to cripple Europe's economy – and hit the region's banks hard.

Switzerland shut schools and banned assemblies of more than 50 people – including in its tourist-rich ski regions – in response to what is now more than 1,500 confirmed cases of coronavirus in the alpine nation. The government flagged an 10 billion Swiss francs ($10.8 billion) aid program, as cantons began shutting down «non-essential» businesses over the weekend.

Active Federal Dialogue

Credit Suisse boss Thomas Gottstein suggested the idea of a small business fund of at least $20 billion for bridge financing, the paper reported, citing sources. Switzerland's two big banks – UBS and Credit Suisse – are expected to shoulder the main financial burden.

A Credit Suisse spokesman said the bank is «in an active dialogue with the government, Swiss central bank, and Finma to evaluate options to help Swiss small- and mid-sized businesses with liquidity and credit in the current situation».

Domestic lenders like Raiffeisen and Zuercher Kantonalbank – both systemically relevant banks – are also expected to participate. The plan has already been floated to Swiss finance minister Ueli Maurer, according to the report, which didn't specify what the government view was.

Restricting Borders

On Sunday, Germany said it would largely shut its Swiss border in a bid to slow the virus' spread; the Swiss interior minister on Sunday flagged more restrictive borders (the southern border to Italy was already nearly sealed off last week).

Small businesses are already suffering – especially in the tourism sector. On Sunday, Thomas Kluehr, the head of Lufthansa-owned Swiss Air, said he hoped the Swiss government would pony up for financial help to keep the airline afloat, in an interview with weekly «Sonntagsblick» (in German).