Loan guarantee helps domestic motor vehicle trade

Garantiqa Hitelgarancia Zrt. and the Hungarian Motor Vehicle Importers' Union (MGE) have signed an agreement of co-operation with the goal of restoring the trust between finance institutions and vehicle dealers that are still standing. The parties hope that this solution will stabilise the situation of motor vehicle dealers.

György Radnai, CEO of Garantiqa and Péter Erdélyi, Associate President have signed an agreement of co-operation. According to the agreement, Garantiqa issues a preliminary guarantee review about the applying dealers, on basis of the recommendation of the industry and the assessment of the dealers' own credit capacity. The dealers can then turn to financial institutions, which decide about the financing. If the financial institution makes the judgment, that the application of credit guarantee is necessary to finance the sales of a specific dealer, Garantiqa accepts the guarantee request. The involved parties can notify the financial institutions together about the preliminary review and its contents.

"This scheme can bring a big relief for the dealers that are still standing, since beside the stagnant market, the cutback on the credit offers is also making the situation of the dealers more difficult" - said Péter Erdélyi, Associate President of MGE. The President hopes that the participation of Garantiqa in the financing will restore the trust between the financial institutions and the dealers. In his opinion, the crisis has produced such tensions and impossible life situations from one day to the other, in which some people were rattled, which in turn has inevitably led to a worse partner relationship between dealer and financer. "In our opinion, the majority of the dealers is trying to stay afloat in an honest way, fulfilling all their liabilities, and these people deserve help" - says György Radnai, CEO of Garantiqa.