Beneficial loan guarantee for agriculture enterprises

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. A beneficial guarantee can be requested for loans that are necessary for investments supporting production of agricultural products, real estate construction, purchase of machines, equipments and softwares, purchase of land with cultivation purpose, or the start-up of young agriculture farmers.

The significance of block exemption is given by the fact that the guarantee institutions could until now only undertake a guarantee for agriculture enterprises within the frames of agriculture de minimis regulations, in a total sum of 7.500 EUR as aid amount content, or a guarantee at a maximum value of 56.250 EUR. The decree makes it possible for the guarantee institution to raise the aid amount content within any 3-year period to 400.000 EUR (500.000 EUR in less developed regions), with state counter-guarantee, for loans that meet all requirements.

"The new aid structure makes it even possible for us to guarantee loans at several billion HUF amounts, and to be able to do this with a state counter-guarantee" - says György Radnai, CEO of Garantiqa Hitelgarancia Zrt., who thinks that in this way they can support agriculture enterprises with guarantees at a much more beneficial fee.