Actions to safeguard financial stability

Published

The Government has today (3 September) announced measures to safeguard financial stability in the face of Russia’s energy war with Europe.

High and volatile electricity prices have significantly increased the securities that electricity producers must post with the central counterparty Nasdaq Clearing AB. This has led to a lack of liquidity for companies, which risk becoming insolvent in the central counterparty, even though they are fundamentally sound. The market situation also means that losses incurred by a member may cause difficulties for Nasdaq Clearing in managing those losses. Because Nasdaq Clearing is a key part of the financial infrastructure, speedy guarantees from the State are required to ensure financial stability.

“We are in an extremely serious situation where Russia is trying to break Europe by squeezing Swedish households and companies. With the news that Russian gas supplies to Germany are being cut off, urgent action is needed to secure the liquidity of electricity producers. The State must step in with guarantees to ensure financial stability and, ultimately, avoid a financial crisis,” says Prime Minister Magdalena Andersson.

In order for the guarantees to be in place as soon as possible, a committee initiative was taken and then adopted by the Riksdag on Monday 5 September. This decision will safeguard the liquidity of Swedish energy companies, since their liquidity is not adapted to the extreme price situation that currently prevails.

“This is an important message to reassure the financial markets in the extreme situation we are now facing following Russia’s announcement of a reduced gas flow to Europe,” says Minister for Finance Mikael Damberg.

Press contact

Darina Agha
Press Secretary to the Prime Minister Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 592 85 48
email to Darina Agha
Mirjam Kontio
Press Secretary to the Minister for Finance Mikael Damberg
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 074 05 57
email to Mirjam Kontio