With costs rising, energy traders demand bank guarantees worth up to three months, seek pre-payments or require companies to hold cash pools in some cases, index.hu cited Economic Development Ministry State Secretary Mate Loga as saying.
Loga said a government survey showed that companies would need 600 billion to 800 billion forints worth of financing amid a liquidity squeeze, prompting the government to step in with a new bank guarantee programme.
"Companies must be protected so that the liquidity squeeze can be eased," Loga was quoted as saying, adding that the scheme would shift the risks of market volatility from power traders to banks, curbing financing pressure on companies.
Start Garancia Zrt, a state-owned vehicle which will provide the guarantees, has already launched talks with companies involved, index.hu reported, adding that the measure was based on a European Commission framework.
($1 = 432.3 forints)
(Reporting by Gergely Szakacs, Editing by Louise Heavens)
