Tuesday, November 28

Sweden to Give Utilities $23 Billion in Credit Guarantees

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Sweden’s government will provide Nordic and Baltic utilities registered with Nasdaq Clearing AB 250 billion Swedish kronor ($23.2 billion) in credit guarantees as it seeks to prevent an energy crisis from threatening financial stability.

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The measure is aimed at helping companies struggling to meet the surging collateral requirements needed to trade electricity, and avoid technical defaults that could set off a chain of events that might lead to a financial crisis, Finance Minister Mikael Damberg said at a news conference in Stockholm .

Russia’s actions on the energy market have plunged Sweden into a “war economy,” Damberg said. “The European energy market is not built for this.”

The guarantees are primarily aimed at Swedish companies, but entities based in other Nordic and Baltic countries can access them during the initial two weeks.