For Local Governments

As a result of the changes in the Municipality sector during the past few years, the notable payment difficulties and the expected changes deriving from the new Municipality Law, we have, initiated by the European Investment Bank (EIB), temporarily suspended the guarantee undertakings of new municipality loans as of 20.06.2011.

Garantiqa Hitelgarancia Zrt. undertakes suretyship guarantees for the loans and bond issuances of municipality partners, using the counter-guarantee of EIB*.

The major objective of the guarantee program of Garantiqa Hitelgarancia Zrt. for local governments is to support local governments, local governmental associations and local governmental enterprises in obtaining development resources by offering absolute guarantee and thus foster their competiveness and closing up.

In the frame of the program we offer our services to local governments, associations and multi-purpose small region associations, which are willing to participate in development procedures, but for accessing the resources they do not have the necessary collateral. With the absolute guarantee of Garantiqa, the chances of local governments to access the funds increase, the collateral need decreases and the conditions of accessing the funds improve.

* The detailed conditions and guidelines of the counter-guarantee undertaken by EIB are included in Annex 1 of our Business Regulations for Municipalities which is available here in Hungarian.