UK Sets Up £40 Billion Fund for Energy Traders as Markets Strain
- UK Treasury and Bank of England set up fund together
- Move follows similar steps in Europe as market risk grows
This article is for subscribers only.
The UK Treasury and Bank of England launched a £40 billion ($46 billion) fund to provide energy traders liquidity to deal with massive margin calls, joining a list of European states taking dramatic action to prevent the energy crisis becoming a “Lehman” moment.
The so-called Energy Markets Financing Scheme will provide stability for energy and financial markets, and help cut costs for consumers, the government said as Prime Minister Liz Truss unveiled a broader energy package. Denmark also moved on Thursday to shore up power companies with a $13.5 billion package, as the government said firms otherwise risk going under.