JSC  "Grindeks" has applied to State Support Supervision Authority with

a  request  to allow the capitalisation of World Bank loan of LVL 1.598

million.



Public  Budget Law for 2003 provides for such possibility, and Minister

of  Finance has the power to decide on allowing a privatised company to

capitalise  WB  loans  that  have  to  be paid to the public budget. In

return,   the  government  would  get  shares  in  "Grindeks".  If  the

government   approves  the  debt-equity  swap,  it  would  enhance  the

competitive  ability of the company and promote "Grindeks" contribution

to national economy.



Presently "Grindeks" provides jobs to over 500 employees, the aggregate

tax amount paid to the public and local government amounts to about LVL

1 million per year, and the company sales are LVL 18 million per year.