2012-07-12 18:00

Lithuania’s social insurance fund asks government for 230-million-euro loan

Lithuania’s financially-troubled social insurance fund (Sodra), which has already borrowed from the government close to 9 billion litas, intends to borrow again – this time 795 million litas (EUR 230 m).
„Sodra“
„Sodra“ / Andriaus Ufarto/BFL nuotr.
Temos: 1 Sodra

On 27 June, Sodra asked the Finance Ministry to extend a 795 million litas loan which is necessary to pay social insurance benefits in September through December, a draft government decision prepared by the ministry says.

The loan would be provided from the funds borrowed on behalf of the state, the document reads.

According to Sodra’s projections, its budget deficit this year will total 3.472 billion litas and, as usual, will be covered with the loans issued by the government and commercial banks.

As of late June, the total amount lent to the fund by the government made up 7.41 billion litas, and by commercial banks – 1.48 billion litas, which brings the total amount of loans to 8.89 billion litas.

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