Bloomberg News

Lithuanian Finance Minister Simonyte Says Snoras Insolvent

November 24, 2011

Nov. 24 (Bloomberg) -- Lithuanian Finance Minister Ingrida Simonyte said today that Bankas Snoras AB is insolvent as liabilities exceed the lender’s assets.

The government will not cover the bank’s losses because the problems were caused by the bank’s management and not by economic difficulties, she told lawmakers in Vilnius today.

The government took over Snoras on Nov. 16 after the central bank discovered assets worth at least 300 million euros ($401.4 million) were missing. The country’s prosecutors started investigation into possible fraud and embezzlement at the bank. The central bank is planned to decide today on Snoras’ restructuring.

--Editor: Zoe Schneeweiss

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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