• Organization TypeGovernment

Garantiqa Hitelgarancia Ltd

In 1992, the Hungarian government, the major domestic commercial banks, credit unions and some business advocacy association founded in order to act as a catalyst surety (guarantee) the undertaking by the domestic small and medium-sized enterprises, and lending to organizations set up to implement the employee share ownership program. On 13 December 2007, the Hungarian Financial Supervisory Authority (HFSA) was the first financial institution operating in Hungary to allow Garantiqa Hitelgarancia Zrt to operate on a par with credit institutions. This means and acknowledging that the management, control, risk management and capital requirements calculation procedures applied by their Company meet the requirements set for credit institutions. Their basic objective is to promote the development of the SME sector. They provide guarantees for loans, guarantees, leasing and factoring transactions. With the guarantee, the Company undertakes to pay the financial institution on behalf of the debtor if the debtor fails to meet its payment obligation. The guarantee application is sent to us by the financial institutions (commercial banks, savings cooperatives, their contracted leasing and factor partners). During transactions, they do not come into direct contact with their clients who require funds. The guarantee enables small and medium-sized enterprises with a viable business plan to obtain funding, which do not have sufficient collateral to be offered, therefore their lending and support would be considered too risky.
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