Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


VIENNA (Reuters) – Austria’s government on Wednesday granted a 2 billion euro ($2 billion) credit line to the City of Vienna for the power firm it owns, Wien Energie, after the company asked for help covering its futures margins because of surging market prices.

A leap in prices following Russia’s invasion of Ukraine has increased the amount companies must hold in their accounts to keep trading power futures.

As it does not produce all the electricity it needs, Wien Energie relies on trading the market to help supply its roughly two million customers in and around Vienna.

We as the federal government are making a 2 billion euro credit line available to the City of Vienna, which can be drawn on very flexibly, within two hours, should the need arise,” Finance Minister Magnus Brunner told a news conference.

The city’s finance chief said on Tuesday there was no immediate need to use the credit line since futures prices have eased following a peak above 1,000 euros on European power markets on Monday.

On Wednesday, German wholesale contracts for delivery in 2023 were trading around 645 euros per megawatt hour, still far above levels of between 100 and 150 euros in January.

The liquidity shortage, which became public at the weekend, has become a political battleground.

The Social Democrats have led the city government for decades, earning the capital the nickname “Red Vienna. They have a clear lead in national polls while the conservative-led national government is increasingly unpopular.

The conservatives have suggested Wien Energie engaged in speculation on futures markets, which it denies.

The contract for the credit line states the source of the liquidity problems must quickly be identified since they “cannot at first sight be explained by market problems alone,” Wolfgang Peschorn, the federal government’s top lawyer, told the news conference.

($1 = 0.9993 euros)


(Reporting by Francois Murphy; editing by Jason Neely and Barbara Lewis)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts