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Start saw slower growth in 2010

Start Tőkegarancia Zrt, a state-owned guarantor for SMEs, increased its stock of guarantees by 21% in 2010, the company said in a press release. The stock accounted to more than HUF 4 billion at the end of the last year, producing HUF 506 million in the first, and HUF 216 million in the second half of the year, but the rate of growth was well under that in 2009.

Start Tőkegarancia Zrt, a state-owned guarantor for SMEs, increased its stock of guarantees by 21% in 2010, the company said in a press release. The stock accounted to more than HUF 4 billion at the end of the last year, producing HUF 506 million in the first, and HUF 216 million in the second half of the year, but the rate of growth was well under that in 2009.

“Considering that the number of enquiries for our flagship product, the guarantee of payment for EU grants, fell back by 50% in 2010 from the previous year, I’m satisfied with the growth,” Start CEO Csaba Zoltán said, adding that they expect a boom in the number of such enquiries from March as a result of the introduction of the New Széchenyi Plan. “The positive effect of this, however, will only be seen in the last quarter of the year. We expect the guarantee stock to rise above HUF 5 billion by the end of 2011,” Zoltán noted.

Start's co-financing and collateral linked to EU grant money amounted to HUF 3.83 billion at the end of 2010.

Investment capital guarantee stock came to just HUF 243 million at the end of 2010, but Start expects the value of such guarantees to grow from 6% of the portfolio at the end of 2010 to between 10-15% by the end of 2011.

Start's guarantees are covered by HUF 7 billion in the Start Guarantee Fund. (PF)