Actuality

The interest towards EU tender guarantees is growing dynamically. Garantiqa Hitelgarancia Zrt. (Garantiqa) has undertaken a tender repayment guarantee in a value of 2.7 million HUF during the first part of the year, which is almost 3 times as much as the total guarantee undertaking of last year. The company takes on every case at its own risk, without state counter-guarantee.

Garantiqa Hitelgarancia Zrt. has signed new guarantee contracts for a record amount during the first half of the year, even on a worsening loan market caused by crisis management measures. The company undertook guarantees for a total amount of 189 billion HUF within 15.532 contracts, mostly for loans of small- and medium size enterprises. The number of contracts and the value of guarantees have both increased by 11%.

The Ministry of Agriculture and Rural Development has issued a decree which makes it possible for guarantee institutions to support agriculture enterprises with beneficial guarantees, in line with the approved EU block exemption regulations. Garantiqa Hitelgarancia Zrt is already prepared for the reception of applications. The new regulation that has been announced by the agricultural ministry, based on the EU agricultural block exemption decree, will make it easier for agriculture enterprises to obtain loans by beneficial guarantees.

Garantiqa Hitelgarancia Zrt. and the Hungarian Motor Vehicle Importers' Union (MGE) have signed an agreement of co-operation with the goal of restoring the trust between finance institutions and vehicle dealers that are still standing. The parties hope that this solution will stabilise the situation of motor vehicle dealers.

I am the descendant of an architect family, but contrary to my father, I chose construction already back in the eighties - tells us József Király, owner and CEO of the Kecskemét-based Free Line Construction Ltd., about the beginning. The young Kecskemét-native took an architect degree in 1979 at Miklós Ybl college, and found work the same year in the construction industry, at the Bácsépszer company.

The general assembly of Garantiqa has modified the company's business plan for this year. "During the first quarter, the company's guarantee amount has grown, an ever bigger amount of loan cases with guarantee requests is directed to us, but even this development could not compensate the decrease in SME loans" - stated György Radnai, CEO of the company.

The State Aid Supervising Office of the Finance Ministry (PM-TVI) has released the necessary statement making it possible for Garantiqa Hitelgarancia Zrt. to contribute to the financing of small- and medium size enterprises with a bigger subsidy until the end of 2010. The guarantee limit is rising, the amount of the risk taken over from the banks is increasing, and Garantiqa can also undertake guarantees for companies that exceed the limit of de minimis aid.

Garantiqa Hitelgarancia Zrt. is now also providing guarantees to long-term loans of condominia and housing communities. By using the new product of the company, the condominia can reach development loans with more beneficial conditions, for example in the case of energy-saving investments. Garantiqa can undertake a guarantee for maximum 80% of the loan amount (plus interest).

In future, Garantiqa Hitelgarancia Zrt can give a bigger guarantees (up to 90%) compared to what was previously possible, after the EU has approved the initiative of the company regarding the givable state aid to small and medium size enterprises.

In 2008, the surety guarantees of Garantiqa Hitelgarancia Zrt. helped companies to take up loans in a total value of 463 billion HUF - according to last year's preliminary data. Despite the difficult financial situation, the amount of guarantees has grown by 23% during 2008, compared to 2007. The total guarantee portfolio of the organisation exceeds 400 billion HUF. This year, Garantiqa can make it possible for SMEs to take up loans in a total value of 1200-1300 billion HUF with the effective use of the 900 billion HUF guarantee limit (raised to this level by the government).