Conditions of state counter-guarantee change again

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 rate of the state counter-guarantee standing behind the surety guarantees of Garantiqa Hitelgarancia Zrt. increases from 70% to 85%.
• The total amount of guarantee commitments with state counter-guarantee behind them must not exceed HUF 550 billion as of 31 December 2011 (the original limit was HUF 500 billion).
• Surety guarantees to investment loans will again be eligible for state counter-guarantee the rate of which is also 85%.

The modifications are to be announced with urgency, it is therefore expected that the new regulation will be in force from next week.
The changes necessitate certain IT conversions affecting the reception process of guarantee applications. We shall duly inform our partners on eventual temporary measures.