Introduction

 

Garantiqa Creditguarantee Co. Ltd. (Garantiqa) was founded by the Hungarian State, Hungary’s most significant commercial banks, co-operative savings associations and some enterprise interest group associations in 1992 with the aim of operating as a catalyser in the lending processes of national small- and medium-sized enterprises and organisations established for the accomplishment of employer joint proprietor programs by undertaking first demand guarantee.

On the 15th anniversary of the Company’s foundation, on 13th December 2007 the Hungarian Financial Supervisory Authority (PSZÁF) authorized an equivalent operation to Garantiqa to that of commercial banks for the first time among the financial enterprises operating in Hungary. This means and this is the acknowledgment of the fact that the management, inspection, risk management and capital need calculating procedures applied by our Company comply with the same requirements the credit institutions shall comply with. 

Our fundamental objective is fostering the development of the SME sector. We undertake suretyship guarantees for loans, bank guarantees and leasing/factoring deals.

By the surety guarantee the Company commits to deliver the payment obligations instead of the debtor (or subsidized party) towards the financial institution (or the disbursing party), if the debtor (or subsidized party) fails to comply with its payment obligation.

The suretyship requests are sent to us by the financial institutions (commercial banks, savings cooperatives, contracted leasing/factoring partners). During the whole evaluation process, we don't get into contact with the end clients who are requesting the funds.

The surety guarantee enables enterprises and local governments with a viable business plan to access funds, who do not have enough collateral to offer, therefore their borrowing or subsidy would be considered far too risky.