March 4 (Bloomberg) -- Lithuania raised 799 million litai ($301 million) in a private sale of debt securities to AB Siauliu Bankas to help the state deposit-insurance fund meet obligations related to insolvent lender Ukio Bankas AB.
The Finance Ministry, which sold the debt today, also extended a loan for the same amount to the deposit insurer, ministry spokesman Vytautas Lenkutis said by phone in Vilnius, the capital. Siauliu bought the securities, which have maturities ranging from 1.5 years to 10 years, the lender’s spokeswoman, Daiva Griksiene, said by phone.
Lithuania’s central bank revoked Ukio’s license last month, saying the lender’s liabilities exceeded its assets. The government on Feb. 20 agreed to lend as much as 800 million litai to the deposit-insurance fund until Feb. 1, 2019, at an interest rate of 2.801 percent, to help it finance the transfer of some of Ukio’s assets to rival Siauliu.
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