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Hungarian pharmaceutical firm loans to Romanian subsidiary

Richter Gedeon Nyrt, Hungary's largest drugmaker, will loan its Romanian subsidiary, Gedeon Richter Romania, €22.8 million ($30.6 million).

The company will use the money to finance its investment program for 2007. The loan contract is valid from 2007 to 2014, the interest rate being 4.3% per year. Richter Gedeon Nyrt will increase its Romanian subsidiary's share capital by 65 million RON (€19.9 million, $26.7 million). Presently, Gedeon Richter Romania has a share capital of 48.5 million RON (€14.8 million, $19.9 million). The company reported revenues of 4.28 million RON for the Q1 of this year, up 12.2% from the same period last year.

Richter Gedeon started production in Romania in 1998, when the Hungarian company bought the Armedica factory in Targu - Mures. In September 2003, the group and its subsidiary merged into Gedeon Richter Romania SA. (bursa.ro)