Majority state-owned guarantor Garantiqa Hitelgarancia on Thursday said it has raised its guarantee limit from 80% to 90% for companies whose loans do not exceed their annual payroll costs.
The step was made possible after the EU accepted Garantiqa’s request to raise the limit on state-subsidized guarantees. The EU also authorized to raise the limit for state support in the form of guarantees from €200,000 to €500,000.
Because of the economic crisis, even companies among the top 10% of SMEs are seeking guarantees from Garantiqa, which means a growing demand for bigger guarantees, the guarantor explained.
Garantiqa noted that, in response to an expected rise in demand for its services, the government raised in January the upper limit for the guarantees Garantiqa may provide with a state counter-guarantee to HUF 900 billion ($4 billion) this year, doubling the limit from last year. (MTI-Econews)