MOSCOW, 6 Sep — PRIME. Energy group Axpo will be given a $4.08 billion credit line whose liquidity problems could jeopardize the country’s energy supply, the Swiss Federal Council said.
“Due to the sharp rise in prices in the energy markets, Axpo Holding AG has sent a request for temporary liquidity support to the Federal Council. Based on the emergency ruling, the Federal Council has decided to activate the rescue mechanism and provide Axpo with a credit line of 4 billion Swiss francs,” it says. in a government statement.
With this financial measure, the authorities want to prevent liquidity problems for Axpo, which, in a negative scenario, could interfere with Switzerland’s energy supply, it is noted.
According to the company itself, the credit line guarantees that in the event of a further aggravation of the situation in the energy markets, Axpo will be able to cover collateral requirements under long-term contracts for the supply of electricity concluded with its customers, and will continue to contribute to ensuring the security of the country’s energy supply.
The government statement also said that Parliament on Monday approved a $10 billion loan to help power industry systemic companies.