Garantiqa Hitelgarancia Zrt.
Kisfaludy u. 32
1082 Budapest
Hungary
+36 14440100
+36 14440290
garantiqa@garantiqa.hu
http://www.garantiqa.hu
In order to promote small and medium-sized businesses’ development and competitiveness by improving their access to finance, the government of Hungary and major representatives of the financial community, including commercial banks, savings co-operatives and professional interest representation organisations established a joint-stock company under the name Creditguarantee Ltd. in 1992. The company’ primary function is to provide guarantees for the loans granted to small and medium-sized companies. These guarantees help to reduce the lending risks of credit institutions, which in turn, can grant loans under better terms and conditions and at lower collateral requirements. The objective of the founders of the company is to utilise its share capital for the above purposes.
The company expanded its operations in 2006 by providing guarantees to support the access of SMEs to factoring and financial leasing services provided by credit institutions and financial companies for production equipment purchases.
Garantiqa Hitelgarancia Zrt. was the first guarantee institution in Hungary to receive the Hungarian Financial Supervisory Authority’s Resolution of Equivalence, in December 2007. Pursuant to this, Garantiqa Hitelgarancia Zrt.’s risk management practices are considered equivalent to the risk management requirements applied to banks.
Pursuant to the resolution of the company’s General Meeting of April 11, 2008, the company’s name was changed to Garantiqa Hitelgarancia Zrt. and the company adopted a new corporate identity.
The shareholders of the company increased the share capital with HUF 3,028 million so the equity was increased up to HUF 7,840 million. In order to transfer the benefits originated from the capital increase reduced the fees of guarantees counter-guaranteed by State.Based on the Budget Act and an authorisation from the shareholders, the company may provide guarantees for non-subsidised transactions at its own risk.
In 2017 the company joined the COSME LGF program in order to widening the company’s product range and counter guarantee possibilities.
In its 27 years of operation, Garantiqa has provided guarantees in relation to a total loan volume of 5,700 billion forints, under 430,000 contracts.
| Year of creation individual entities or association | 1992 |
| Type of organization National Promotional Bank (NPB), National Promotional Institution (NPI), Private, Mutual, Mixed | NPI |
| Type of scheme guarantee or counter-guarantee | Guarantee |
| Product typology guarantee or counter-guarantee or co-guarantee | Guarantee |
| Ownership i.e. fully mutual, funded by SMEs, banking associations, fully public, fully private, private-public, mixed models | Private-public mixed models |
| Shareholder structure Private / Public (in %) | 22,4578 % private,77,5422 % public |
| Legal form of single guarantee entity or association: i.e. fund, development bank, development agency, cooperative or mutual societies, bank, foundation, association, limited company, etc. | Closed Co. Ltd, by shares |
| Structure / Network i.e. central scheme with regional offices, central scheme only, association network | Central scheme only |
| Geographic coverage i.e. local, regional, national | National |
| Sectorial focus i.e. agriculture, industry, crafts, retail, liberal professions, cooperatives, etc. | No special sectorial focus |
| Size of businesses supported i.e. large companies, SMEs, micro-enterprises, independent/self-employed | SMEs, Micro-enterprises, Independent/Self-employed |
| Supervision statute i.e. mono-product banking licenses, financial intermediary statute, non-supervised. For associations, please state statute of members | Financial intermediary statute |
| Profit / Non-profit oriented dividends to public shareholders are not considered as profit orientation | Non-profit oriented |
| Do you benefit from a counter-guarantee at local, regional or national level? Local level or Regional level or National level | National level - Hungarian State |
| Are you/your members financial intermediary for EU-programmes? CIP/COSME or Structural funds or Progress or RSI/RSFF Horizon 2020 | COSME LGF |
| Types of guarantee products provided by your organisation/your members | Loan default guarantees, Working capital loan guarantees, Leasing guarantees, Project guarantees, Overdraft guarantees, Investment loan guarantees, Factoring guarantees, Bank guarantees, Frame guarantees |
| Other SME support instruments offered by your organisation/your members Subsidized loans or Mezzanine financing or Venture capital or Coaching or Mediation services | No |
| Is the activity subject to state aid regulation? | Yes |
| Do you (your members) use..? De minimis or GBER or Regional guidelines or Notification | De minimis, GBER and Notification |
| Do you (your members) dispose of an internal rating/scoring system? | Yes |
| Do your guarantees provide deponderation (capital relief) for member banks subject to capital requirements (Basel agreement)? | Yes |
| Do you (your members) benefit of a public counter-guarantee that allows deponderation (capital relief)? | Yes |
