Zermatt faces bankruptcy as debts pile up
The central lending body for Switzerland's communes has launched an injunction against the resort of Zermatt, after mounting debts and insolvency.
The central lending body for Switzerland’s communes has launched an injunction against the resort of Zermatt, after mounting debts and insolvency.
In addition, the lending body warned that the financial situation in Zermatt and other municipalities in canton Valais was so bad, they could soon find themselves bankrupt. In the light of this, it has decided to withdraw a planned loan to communes of more than SFr100 million.
The injunction against Zermatt concerns the repayment of a SFr5 million loan to the resort, which has been outstanding for more than nine months. The central lending body also accused the cantonal and municipal authorities of not taking any measures to win back its confidence.
It described the Swiss communal finance system in general as being full of loopholes, but laid the blame for the current financial problems in Zermatt as well as those of the spa town of Leukerbad in the same canton, on both the municipal and cantonal authorities.
Leukerbad was declared insolvent and went into receivership after running up debts of around SFr350 million.
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