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Garantiqa seeks to raise capital in order to provide larger guarantees

Hungary's Garantiqa Credit Guarantee has begun talks with the European Investment Bank (EIB) and the European Investment Fund (EIF) aimed at obtaining additional capital that would enable the company to provide bigger guarantees, the business daily Napi Gazdaság reported on Tuesday.

Garantiqa CEO György Radnai told the newspaper that the company's current capital of HUF 24.4 billion (€90.24 million) makes it possible to provide guarantees of up to HUF 2 billion-HUF 3 billion.

Radnai said that such an increase in capital would allow Garantiqa to provide guarantees for entire branches of industry, big local-council investments and other major projects.

Garantiqa Credit Guarantee is in talks with the European Investment Bank (EIB) on the provision of subordinated capital, and it also applied for support in the form of counter-guarantee with the European Investment Fund (EIF), the fund helping small businesses.

The Garantiqa CEO remarked that the company could also expand its guarantee activities if it could obtain funding in the form of subordinated capital loans from the European Union's Jeremie program, Radnai said, noting, however, that such efforts failed in the past. (MTI-ECONEWS)