Government to lend billions of litas for Snoras deposit refunds

VILNIUS- The government is going to lend 3.3 billion litas (900 million euros), for the state company Deposit and Investment Insurance, which will refund the deposits to the bankrupt Snoras Bank clients, reports LETA/ELTA.

“The loan was increased[from 2.4 billion litas] because a part ofthe shares, which make up  thecapitalof the company, cannot be quickly and profitably sold,” saidLithuanian Finance Minister Ingrida Simonyte.

“According to the decision, the state company Deposit and Investment Insurance will get a loan of 3.3 billionlitas, but certain needs will depend on various circumstances, such as the pace of people trying to refund their money, which can be done in a term of five years; therefore, there is no need for urgency. Secondly, the company possesses securities and their realization could change the present needs. Selling all the securities at once would cause an immense loss, so everything has to be done gradually,” said Simonyte.