Swiss National Bank rescues firm it needs to make banknotes

Bloomberg

The Swiss National Bank bought a 90 percent stake in Landqart AG, bailing out the sole producer of the material on which its paper money is printed. The acquisition is aimed at saving Landqart, which the SNB said was facing a liquidity shortage and a “direct and existential threat.”
The central bank also said the move ensures “continued supply of cash.” Banknotes remain hugely popular in Switzerland, where the largest denomination is the controversial 1,000-franc bill. President Thomas Jordan will provide further details at a 11 a.m. press conference in Zurich.
The SNB also holds a 33 percent stake in banknote printer Orell Fuessli Holding AG, which acquired the other 10 percent in Landqart from Fortress Paper Ltd. The two companies are paying a total 21.5 million francs ($ 21.8 million) for Landqart and another firm that holds the relevant patents for Landqart’s activities.
The SNB is half way through its launch of a new banknote series, which uses the Durasafe substrate — a composite of paper and polymer — that Landqart produces. “The SNB has decided to acquire the company because, otherwise, issuance of the new Swiss banknote series would not have been guaranteed across the entire production stream.”
The new 10-franc bill came into circulation earlier this year. Still awaiting their debut are the 100, 200 and 1,000 franc notes. Citing the popularity of cash in Switzerland, the SNB has decided to continue issuing high-denomination bills. That has raised eyebrows among some such as former US Treasury Secretary Lawrence Summers, who has called on the SNB to scrap them in a bid to thwart crime.