Lithuanian government extends €420m loan to state social insurance fund

Social Insurance Fund headquarters
„Sekundė“

The government adopted the resolution on Wednesday. The social insurance fund, Sodra, which administers Lithuania’s retirement pensions and social benefits, will have to pay back the money within 10 years.

The loan will be used to service the fund’s previous debts and to balance its cash flows, including covering the deficit in this year’s budget.

The Sodra’s spending this year will exceed revenue by €742 million.

The fund’s debt currently stands at €3.762 billion. About half of it is owed to the government and the rest to commercial banks.

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