€10b loan proposal for power sector submitted to parliament

The government on Monday submitted proposal for a third supplementary budget to the parliament including the emergency funding of up to 10 billion euros to power production companies, said the Ministry of Finance in a press release.

Earlier on Sunday, the government announced the emergency funding to power production companies with the view to stabilising the electricity market.

The funding will be given in the form of loans and loan guarantees, not grants.

the purpose of the scheme is to cover the companies’ liquidity needs arising from the increased collateral requirements for their electricity derivative contracts.

The Russian war of aggression and reduced gas deliveries have caused an exceptional situation in the European electricity and gas markets, increasing electricity and gas prices significantly in 2022.