Lithuania to Borrow for Ukio’s Deposit Insurance Payouts
This article is for subscribers only.
Lithuania’s government plans to lend between 500 million litai ($193 million) and 600 million litai to help the state deposit-insurance fund meet obligations related to insolvent lender Ukio Bankas AB.
The bank’s activities were suspended on Feb. 12 because of risky lending to related companies, according to the Bank of Lithuania. Ukio’s liquidation could cost the deposit-insurance fund as much as 2.7 billion litai, according to central bank data based on the amount of insured deposits.