Czech state to lend up to CZK 74 billion to energy group ČEZ

The Finance Ministry will lend over CZK 74 billion to energy company ČEZ to increase its liquidity, the Czech News Agency reports. ČEZ signed the loan agreement with the Ministry of Finance, worth up to EUR 3 billion, on Friday. The money will be earmarked for guarantees in case of a possible increase in so-called margin requirements on the energy exchange market, which could occur in the event of extreme volatility, for example, if there were to be a complete stoppage of the gas supply from Russia to Europe. ČEZ CFO Martin Novák said that, like other European energy companies, ČEZ must prepare for this eventuality, and that the need for financing margins could even double in such a case.