4 September 2022 at 19:12 Ministry of Finance: No need for measures in the power market The measures that come into effect in Sweden and Finland are not needed in Norway. The Ministry of Finance writes this in a press release on Sunday evening. Over the weekend, both Sweden and Finland introduced so-called liquidity guarantees for companies trading on the financial power market. Norway therefore believes that there is no need for this. At the same time, the need is continuously assessed, says the press release. – The Ministry of Finance, the Ministry of Oil and Energy, Norges Bank and Finanstilsynet are following developments closely. There is considered to be no need for Norwegian measures now. The need for measures is assessed on an ongoing basis, the report states. Players who trade on the power exchange Nasdaq Clearing must put money on the table, or provide money as collateral, in order to be allowed to enter into agreements there. The fear in both Sweden and Finland is that the power companies, due to the large fluctuations in the market, cannot afford to provide the money they have agreed to pay. This is feared to affect other financial markets as well, and lead to a crisis. Nasdaq Clearing is a marketplace where energy companies, including Norwegian ones, can enter into long-term or advanced agreements. On Friday, Russia announced a halt in the flow of gas from Russia to Europe through the Nord Stream 1 pipeline. The halt is expected to have a major impact on the power markets when they open on Monday, and is the reason for the crisis measures in Norway’s neighboring countries. Swedish Prime Minister Magdalena Andersson herself on Friday called the government’s guarantee scheme radical. – This threatens our financial stability. If we don’t act quickly, it could lead to serious disruptions in the Nordics and the Baltics, she said at the press conference.
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