(Bloomberg) —
(Bloomberg) —
Finland’s government agreed to set up a 10 billion-euro ($10 billion) emergency backstop to help utilities weighed by surging collateral demands as they trade on volatile power markets.
The facility is made up of loans and credit guarantees, Prime Minister Sanna Marin said at a news conference in Helsinki on Sunday. It will help power companies such as Fortum Oyj with short-term liquidity needs.
Finland’s move follows a decision earlier on Sunday by neighboring Sweden to extend power generators as much as 250 billion kronor ($23.2 billion) in credit guarantees to stave off the threat of a financial crisis. Utilities registered with Nasdaq Clearing AB are eligible for the Swedish plan.
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