Finnish government plans €10 billion crisis package for energy companies


Helsinki, September 5 (SocialNews.XYZ) The Finnish government has offered to provide the country’s power companies with loans and guarantees of up to 10 billion euros ($10 billion) to guarantee their liquidity adequacy.

Finance Minister Annika Saarikko told a government press conference on Sunday afternoon that with this commitment, the government wanted to “appease the electricity futures market, or derivatives market, and guarantee the availability of electricity in Finland under all circumstances”.

“The state could provide loans or guarantees on a case-by-case basis to companies whose continued operations are essential to the functioning of society,” Prime Minister Sanna Marin said at the press conference.

The situation erupted over the weekend following reports that natural gas deliveries from Russia to mainland Europe via the Nord Stream One gas pipeline would not resume on Monday, Xinhua news agency reported. .

Finland does not use Nord Stream One, but the Nordic electricity market is likely to experience a price increase.

The Finnish measures were thought to follow Sweden’s similar but larger announcement on Saturday.

According to the government‘s proposal, the state could grant loans or guarantees to electricity companies if they are threatened with insolvency.

A government loan would be the last resort when all other financing options have been exhausted. Only companies central to the functioning of the electricity market could benefit from loans or guarantees.

Mika Lintila, Minister of Economic Affairs, said at the press conference that the government wants to be proactive in the situation to avoid a “Lehman Brothers” in the energy market.

Lintila stressed that the state is the lender of last resort if other channels are not available.

“The primary responsibility lies with the banks and the owners,” he added.

He said the policy would only be available to Finnish companies. Thus, the German subsidiary of Fortum, Uniper, is not eligible for aid from Finland.

The crisis package requires the approval of Parliament. It will be presented to parliament on Monday. Local analysts said he had a strong chance of being approved under the current situation.

Source: IANS

Finnish government plans €10 billion crisis package for energy companies

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