Stasys Jakeliūnas, the prime minister's adviser on financial matters, said that the government will decide in several weeks' time on what to do with the loss-making company, it wrote.
Various options are currently being considered, including suspending the insurer's operating license so that it would not take on any new obligations. Another option would be to hold talks with banks and ask them to share the financial burden of the losses the company has incurred and may incur in the future. A possible contribution by banks is being discussed, because the state has already made its contribution to the company by increasing its authorized share capital.
Based on data from the Finance Ministry, BPD suffered losses of 154 million litas (EUR 44.6m) in 2009 through 2012. Its losses are forecast to widen both this year and next year.
The state-owned mortgage insurer posted 47 million litas in profits for 2001 through 2008.
