GARANTIQA'S GUARANTEE PORTFOLIO INCREASES DESPITE THE CRISIS

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).

Garantiqa Hitelgarancia Zrt. has increased its total guarantee volume by 23%, resulting in 28 279 live contracts, according to last year's preliminary data. The new guarantees of the company made up for around 364 billion HUF in 2008, and the total guarantee portfolio exceeded 400 billion HUF by the end of the year. With the new contracts, Garantiqa helped SMEs and municipalities to loans in a value of more than 463 billion HUF. "The results are in line with our 2008 budget, calculating with a 22% increase of the guarantee portfolio. The budget is even surpassed by 1% under the difficult financial circumstances" - said György Radnai, Chief Executive Officer of the company.

According to the preliminary data, the tendency of guarantee types, noticed already in 2007, continued in 2008: The Széchenyi Card and other card-type SME loans are continuosly popular. More than half of the total volume of guarantees connects to these loans. Over 25.000 such contracts have been signed, the amount of these guarantees was around 190 billion HUF.

The dynamic expansion of the municipality guarantee market was visible already during the first quarter of 2008. Last year, Garantiqa Hitelgarancia Zrt. has contributed to totally 56,6 billion HUF in loans and bond emissions, with guarantees in a value of nearly 28 billion HUF.

Joyfully, the prolongation of existing guarantee contracts has also grown. During 2008, 1462 such contracts meant guarantees in a value of 62 billion HUF.

Within the SME sector, micro enterprises continually stand for the biggest number of guarantee applications from the company. During 2008, the SME guarantees with individual approval were heavily represented, Garantiqa Hitelgarancia Zrt. signed 1273 contracts, and helped the loan uptake of 92 billion HUF with a guarantee amount of 69 billion. "The conclusion is that the dynamic growth that has been around for years was representative for the results in 2008 as well" - added György Radnai.

At the extraordinary general assembly at the end of last year, Garantiqa Hitelgarancia Zrt. has reviewed the business plan for 2009, including the steps that make it possible to use the guarantee limit (raised by the govenment to 900 billion HUF) in an effective way. With these measures, the company can contribute to SME loans in a total value of 1200-1300 billion HUF.

Accordingly, the company initiated the abolishment of the ban on state aid to "clients in difficult situation"- at the EU. Principally, Garantiqa cannot give any guarantees to this category at the moment, which is why it has been proposed that organisations like Garantiqa should be able to guarantee five risk categories instead of three.
The company also plans to give guarantees to certain loans even if the collateral is decreasing. This means that if the client's realty or part of the own capital is depreciated or sold, Garantiqa will still back up the client with a decreased guarantee amount of at least 40%.