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Lithuanian Government agrees to lend another 230 million euros to social insurance fund

„Sodra“
Andriaus Ufarto/BFL nuotr. / „Sodra“
Šaltinis: BNS
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The Lithuanian Government will provide a 795-million-litas (EUR 230m) loan to the financially-troubled social insurance fund (Sodra), which has already borrowed nearly 9 billion litas from the government and banks.

On Tuesday, the Cabinet approved a proposal from the Finance Ministry to extend the 795 million litas loan which is necessary to pay social insurance benefits in September through December.

According to Sodra’s 2012 cash flow projections, its budget expenditures this year will exceed revenues by 3.472 billion litas.

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

BNS
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