Published: Less than 20 min ago
The government proposes credit guarantees to the electricity industry to avoid a financial crisis.
A “quick and resolute action”, according to Swedbank’s chief economist Mattias Persson.
– Protection dykes are built so that ordinary people are not affected, he says.
At Saturday’s specially convened press conference, Prime Minister Magdalena Andersson (S) presented a proposal to proceed with liquidity guarantees of hundreds of billions of kroner to companies in the electricity industry.
The announcement comes shortly after Russian Gazprom shut off the gas taps to Germany.
– Even before that, we were facing a tough winter, but with yesterday’s announcement, we are facing a winter of war, she says.
Swedbank’s chief economist Mattias Persson says that the liquidity guarantees will help to reduce the risks for households.
– I see it as a step to ensure that we as ordinary people are not affected. I wouldn’t be worried at this point. You are quick and react resolutely to limit the risks that can affect people, he says.
What is behind the decision?
– When electricity prices rise very much, the liquidity requirements on the companies that trade electricity on the market increase. This can mean that they suddenly do not have enough money, especially when Russia threatens not to send gas, he says.
“Limits risks in the electricity market”
Nasdaq Clearing is an intermediary in financial transfers on the electricity market, and the government’s decision means that the companies registered with the clearinghouse now receive increased security guarantees, says Mattias Persson.
– The energy producers need liquid funds to be accepted by Nasdaq Clearing. The companies that are members can now apply for security guarantees and this limits the risks that now exist in the electricity market, he says.