UPDATE 1-Swiss govt sees no credit crunch in Switzerland

* Swiss econ. ministry says no need for government measures

* Says large firms have favourable financing conditions

* Says SNB measures were key in avoiding credit crunch

(Adds details, UBS consumption indicator, background)

By Sven Egenter

ZURICH, Oct 27 (Reuters) - The Swiss government sees no signs of a credit crunch in Switzerland, the country's economy ministry said on Tuesday.

The credit market is working for large companies as well as for small- and medium-sized firms and there is no need for measures from the federal government, a ministry statement said.

The Swiss National Bank has taken a number of steps to keep credit supply up in Switzerland despite the financial crisis and a deep recession.

The central bank is offering money to banks at interest rates close to zero and has bought corporate bonds to lower credit spreads.

The ministry statement, on a report drawn up in September for parliament's economy committee, said the SNB's surveys pointed to slight tightening of credit standards.

"So far, this normal tightening, caused by the economic situation, has not had any impact on the credit volumes nor the interest rates in Switzerland," the ministry said.

Larger companies got relatively favourable conditions on the credit market and even heavily export-dependent firms with mediocre ratings were able to secure financing in recent months, it said.

"This relatively relaxed situation is due to the fact that the SNB eased monetary policy quickly and sharply and provided the banking sector with sufficient liquidity," it added.

The SNB's recent monthly report showed that overall domestic credit supply still grew some 4 percent on the year in August.

In contrast European Central Bank data showed on Tuesday that loans to euro zone households and firms fell on an annual basis in September for the first time ever.[ID:nLR393676]

The SNB left its unconventional easing measures in place at its latest meeting in September as it remained cautious about the sustainability of the recovery.