On 16 April 2020, the Swiss Federal Council passed special legislation in order to relax the current insolvency regime applying to companies and provide a better framework for all businesses (the COVID-19 Insolvency Act).
As a result of the coronavirus disease (COVID-19) pandemic (SARS-CoV-2), many companies will find themselves in financial difficulties. The Swiss government has already taken various measures to ease the burden on companies, including a financial assistance program of up to CHF 40 billion, and is considering further measures.
Insolvency and international cooperation in insolvency matters have undergone major and constant redevelopment, both in the European Union and internationally, as required by the UN Commission on International Trade Law. However, aside from its banking sector, Switzerland has not fully participated in this modernisation process.