Our Business Regulations regarding surety guarantees to SME finance have been modified. The new document comprises the changes related to the New Széchenyi Counter-guarantee Programme as well as to the modification of the act on the 2011 central budget we have published information about on 16 June 2011.
On basis of the C (2008) 6357 Decision of the European Commission dated 12 November 2008 the state aid content of the surety guarantees of Garantiqa Hitelgarancia Zrt. is calculated as a difference of the theoretical market fee and the actual guarantee fee charged.
Due to the problems and debt service difficulties experienced in past months, the changes expected after the modification of the Act on Local Municipalities and on the initiation of the counter-guarantor European Investment Bank Garantiqa Hitelgarancia Zrt. introduces a temporary suspension of accepting new guarantee applications from 20 June, 2011.
The Parliament has accepted the proposal to modify the act on the 2011 central budget containing changes affecting the activity of Garantiqa Hitelgarancia Zrt. as follows:
The intermediation agreement under the New Széchenyi Counter-guarantee Programmes was signed on 25 May, 2011. It means, that counter-guarantees to investment loan guarantees are available again. We expect to be prepared to accept new guarantee applications from 20 June, 2011.
As advised earlier direct surety guarantees to EU grants are not available from Garantiqa Creditguarantee Co. Ltd. from the 1st of June, 2011.
Upon reviewing the company's business activity the management of Garantiqa Creditguarantee Co. Ltd. has decided to discontinue giving direct surety guarantees to European Union grants.
The Business Regulations of Garantiqa Creditguarantee Co. Ltd. regarding the undertaking of surety guarantees related to loans, bank guarantees, factoring and financial leasing have been modified as from the 1st of April, 2011.
As we have advised our esteemed Partners before the conditions of the state counter-guarantee to the surety guarantees undertaken by Garantiqa Creditguarantee Co. Ltd. have changed. According to the Act CLXIX. of 2010 on the Budget of the Republic of Hungary for the Year 2011 there will be no state counter-guarantee behind our surety guarantees to the investment loans of SMEs as from the 1st of April, 2011.
According to the Business Regulations of Garantiqa Creditguarantee Co. Ltd. as well as to the surety guarantee contracts the financial institution must inform the guarantor on all circumstances that might have material effect on the contractual commitments within 30 days from the date such information becomes known to it.