Following Sweden, Denmark and Japan in Switzerland, a number of banks began to issue loans at a negative rate. That is, not the borrower pays the bank, but the bank to the borrower.
A similar service is provided to those who take a large amount for a short period. Its appearance is due to the fact that the interest rate of the National Bank of Switzerland is set at minus 0.75%. Thus, the country's credit organizations are forced to pay the Central Bank for storing excess funds. By issuing large amounts of money for short periods, banks do not allow money to “run out” and save on payments to the Central Bank.
A negative interest rate at the Central Banks contributes to the high cost of the national currency while maintaining low inflation. Negative interest first appeared in Denmark in 2012.