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Nordic Lawmakers Move on $33 Billion Backstop for Utilities

  • Sweden makes $23 billion available in credit guarantees
  • Finland sets up $10 billion program of loans and guarantees
Mika Lintila
Mika LintilaPhotographer: Emmi Korhonen/AFP/Getty Images
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Lawmakers in Sweden and Finland on Monday reviewed their $33 billion emergency backstop plans devised over the weekend to prevent utilities from defaulting after a fresh surge in energy prices.

On Sunday, the two governments announced liquidity facilities made up of loans and credit guarantees to avoid some power companies going into technical defaults as soon as Monday over climbing collateral requirements. The aim is to prevent Russia’s energy curbs from sparking a financial crisis. Sweden’s parliament approved the measure on Monday afternoon.