Swedish authorities will allocate more than $23 billion to ensure the liquidity of energy companies

The Swedish government plans to send 250 billion Swedish kronor ($23.18 billion) to guarantee the liquidity of energy companies due to rising prices in this area, Finance Minister Mikael Damberg said at a press conference.

He noted that at present the electricity market is in an exceptional situation, when the dynamics of electricity prices has led to a lack of liquidity among its producers listed on the NASDAQ exchange.

“The situation has become even more aggravated after Russia’s latest statement on the reduction of gas supplies to Europe. To ensure the liquidity of these energy companies, today the government is presenting a proposal that means that the state can issue loan guarantees of up to 250 billion,” the minister said (quoted from TASS).

It is noted that the Swedish authorities intend to issue loan guarantees during 2022 and 2023. electricity producers and, if necessary, other participants in this market. Guarantees can also be obtained by companies from neighboring countries (Finland, Denmark, Norway, the Baltic countries). The Swedish Parliament will consider the government’s proposal on 5 September.

Formerly Reuters reportedthat the German government has agreed on a third package of measures designed to protect the public and businesses from the impact of soaring inflation. Germany will spend 65 billion euros for these purposes, more than in the first two packages.

The authorities in Germany, as part of a new aid package, have planned to provide discounts on public transport and tax incentives in the amount of 1.7 billion euros for 9,000 energy-intensive companies, follows from the document.

The third package of measures was agreed in view of high energy prices. German Chancellor Olaf Scholz at a press conference declaredthat the adoption of all three packages will cost 95 billion euros, writes Spiegel. The document notes that the package will “unload all households – including retirees, students and interns.” The planned measures include a one-time payment of 200 euros for students and 300 euros for pensioners.

Gas prices in Europe accelerated growth after Gazprom’s announcement of stop the last gas compressor turbine for scheduled work from August 31 to September 2, last week the price of the nearest gas futures exceeded $3,500 per thousand cubic meters. On August 29, after Germany’s announcement of the early filling of gas storage facilities, they fell by more than 20% to $2,802.