Nordic Utilities Get €33 Billion Backstops as Power Markets Fray
- Sweden makes $23 billion available in credit guarantees
- Finland sets up $10 billion program of loans and guarantees
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The governments of Sweden and Finland decided to create emergency backstops to help utilities struggling to trade on power markets gripped by unprecedented turbulence.
They’re setting up liquidity facilities made up of loans and credit guarantees, worth $33 billion in total, to avoid some power companies going into technical defaults as soon as Monday over surging collateral requirements. The aim is to prevent Russia’s energy curbs from sparking a financial crisis.