2022 3d Supplementary budget- Lending facility for energy companies
The Government of Finland's third supplementary budget includes a EUR 10 billion loan and guarantee scheme for the energy sector.
The central government scheme is a last-resort financing option for companies that are in need of liquid funds to meet energy market’s margin calls. The maximum term of loans under the scheme is 2 years.
Based on the third supplementary budget, the government’s net borrowing in 2022 can be as high as EUR 18.9 billion, but the borrowing requirement is uncertain as it will depend on the actual take-up of loans under the facility.
State Treasury has updated its website on Borrowing Requirement, indicating that the increased financing needs under the third supplementary budget are foreseen to be covered with short-term funding.
Since 2011, it has been possible for realised borrowing to deviate from that budgeted, given adequate funds to cover expenditure and safeguard sufficient liquidity and a cash buffer.
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