Garantiqa raises its guarantee portfolio on a decreasing loan market
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%.
Despite the decrease in SME loans and the stricter loan policies of the banks, Garantiqa Hitelgarancia Zrt. could increase its guarantee portfolio during the first half of the year. During the first 6 months, the company undertook guarantees for the funding of its clients in a value of 189 billion HUF, so there is a good possibility that the 400 billion yearly plan can also be realised. "We have been trying for several years to undertake guarantees for the funding of every enterprise, and since the outbreak of the crisis we concentrate on being able to guarantee bigger loans at the best possible conditions, even towards clients with bigger risk according to current standards" - said György Radnai, CEO of the company. He thinks it is natural that the banks and clients apply for guarantees for an ever bigger part of the decreasing total loan amount, but absolute growth couldn't have been realised without the crisis management measures of the company.
During the first part of 2009, Garantiqa introduced the guarantee for loans meant to re-schedule SME loans, and also undertook guarantees for all SME funding programs of the state, like the New Hungary Current Asset Loan or the micro loan program. Apart from this, the company has reached, with a diligent lobbying activity towards the EU, a widening of its guarantee undertaking possibilities. As a result, the company can guarantee investment, development, environment, employment or R&D loans in a value up to 2.5 billion HUF, with a state counter-guarantee, according to the block exemption regulation. With EU authorisation, apart from the de minimis aid, Garantiqa can also support SMEs in the form of a guarantee in a value of 500.000 Euros until 2010, if these SMEs have got into a difficult condition because of the crisis. It can also be regarded as a stretch of EU aid policy frames, that from the end of June, the company can guarantee agriculture loans containing a total of 400.000 EUR state aid during 3 years (500.000 EUR in less developed regions), on an agricultural block exemption basis.
As a result of these measures, the company undertook guarantees for individually assessed large amount loans in a value of 52 billion HUF during the first 6 months of 2009 (vs. the 35 billion HUF last year) beside the growing number of contracts. However, the banks still mainly apply for Garantiqa's participation in micro enterprise loans, 77% of the contracts signed this year make up for a total guarantee value of 80 billion HUF. The value of the Széchenyi Card guarantees has grown by 9% to 64,8 billion HUF at the same time that the number of contracts only increased by 2%. The value of "package" guarantees according to frame agreements with banks has not increased during the first part of the year, but the number of these contracts has grown by 8% to 13.700.