The Swiss government said it will sell its investment in Swiss bank UBS in the coming days and waive further coupon payments for a 1.8bn Swiss franc (€1.2bn) cash payment.

The government said Wednesday's finalised settlement to a legal dispute between Zurich-based UBS and the Internal Revenue Service, as well as the bank's ongoing restructuring efforts, represent steps toward stabilising UBS. Switzerland's financial regulator and central bank welcomed the move.