Surety Stock at State-owned Guarantors Set to Climb

Analysis

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National Economy Minister Márton Nagy announced this year's targets for surety stock at state-owed guarantors Garantiqa and Start Garancia at a press conference on Friday.

Nagy said Garantiqa's surety stock was expected to reach HUF 2.7 trillion this year, climbing from around HUF 2.5 tln at the end of 2023. Credit volume backed by those guarantees is set to rise to HUF 3.5 tln from HUF 3.4 tln, he added.

He noted that two-thirds of Garantiqa guarantee contracts were for microbusinesses, while Garantiqa backed 45% of all SME loans. The number of Garantiqa contracts could reach 77,000 this year, he added.

Start Garancia's surety stock is set to grow to around HUF 700 bln this year from HUF 470 bln at the end of last year.

Nagy said the state's system for credit guarantees supported the government's economic policy and the development of the lending market.

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