Transcript 1. dia - Polska Agencja Rozwoju Przedsiębiorczości

Garantiqa Hitelgarancia Zrt.
dr. Márton Vadász
director
„Guarantee Systems in European CountriesSearching for the Best Model”
Warsaw, February 9, 2011
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Garantiqa Hitelgarancia Zrt.
(Garantiqa Creditguarantee Co. Ltd.)
Founded in December 1992
Subscribed capital: EUR 17.2 million (HUF 4,8 billion)
(December 31, 2010)
Equity: EUR 68.3 million (HUF 19 billion)
Mission: to help SMEs’ access to financial resources by
undertaking surety guarantees and thereby to enhance their
development and improve their competitiveness.
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The role / cooperation of the
government and the private sector
Ownership structure:
Hungarian Government, represented by
MFB (Hungarian Development Bank): 50.025%
+ Indirect state ownership: MFB 13.97%
Hungarian Export-Import Bank (0.25%),
Total: 64.24%
Commercial banks, credit co-operatives,
enterprise associations: 35.76%
Banks are in double role: owners + beneficiaries
of the guarantees
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Legal background
• Act CXII. of 1996 on the financial institutions
• Annual act on the central budget
• National and EU competition / state-aid legislation
Garantiqa is not subject to company tax and does
not pay dividend to its owners.
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Track record
• Market share: 13% of the approx.
HUF 4000 billion SME loan portfolio as of end 2010
•
2010 results:HUF cca 300 billion (EUR 1.06 billion)
new guarantees (y/y decrease 20%)
HUF 506 billion (≈EUR 1.82 billion) guarantee portfolio
(38956 contracts)
•
Guarantees between 1992-2010:
209.000 financing deals
HUF 2400 billion (≈ EUR 8.6 billion) SME-loans and bank
guarantees
HUF 1900 billion (≈ EUR 6.9 billion) guarantees
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Evolution of commitments
Surety guarantees in 2000-2010
35 000
30 000
350
250
150
50
-50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Guarantees at start
25 000
20 000
15 000
10 000
5 000
0
Number of
contracts
Guarantee,
billion HUF
450
Number of new contracts
6
Market position
founded
in
owners
products
equity
(in million
HUF
approx.)
total
commitments
(in billion
HUF approx.)
approx.
market
share (%)
Garantiqa Hitelgarancia Zrt.
1992
State + 23
banks + 47 cooperative FIs,
+ SMEassociations
•first demand guarantees to
SME loans, factoring, asset
leasing
•guarantees to bank loans and
bonds of municipalities
•EU tender guarantees to SMEs
24 000
506
89
AVHGA
1991
State + 5
banks
first demand guarantees to
loans, factoring, asset leasing
deals of SMEs in agriculture
21 500
58
10
START Equity Guarantee
Co. Ltd.
2006
MVA
(Hungarian
Foundation for
Enterprise
Promotion) +
MFB Invest
•tender guarantees
•equity guarantees
50
4
0.6
MV Zrt. (Venture Finance
Hungary Co. Ltd.)
2007
MFB
(Hungarian
Development
Bank)
•manager of the JEREMIE
holding fund
•direct portfolio guarantees
•counter-guarantee
1 000
2
0.3
UNIO Guarantee Cooperative
2007
State + SMEassociations
+ SMEs
•mostly tender guarantees
•credit guarantees
260
n.a.
0.1
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SME guarantee products
Gradually extended offer:
• 1999 – bilateral agreements with banks (‘packages’)
• 2002 – Széchenyi Card
• 2005 – other card type loan guarantees
• 2006 – guarantees to financial asset leasing and factoring
• 2007 – tender guarantees
• 2008 – Garantiqa Pont Consulting Ltd.,
Jeremie- micro credit guarantees,
portfolio guarantee product
• 2009 – new products to mitigate the effects of the crisis and
to enhance banks’ willingness to lend to SMEs
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Garantiqa Hitelgarancia Zrt.
Two ways of undertaking surety guarantees
I. standard process, individual assessment
receipt of application
• assessment of client and transaction risks
• decision
– Deputy CEO / Risk Management (<HUF 100M)
– Guarantee Committee
• deadline for the evaluation and
decision making: 15 working days
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Garantiqa Hitelgarancia Zrt.
II. Simplified process (‘packages’)
• surety guarantees undertaken on basis of
bilateral agreements with banks
• to a big number of smaller amount,
standardized loans
• preliminary analysis of risk management and
lending practices of the financial institution
• exact definition of the product terms and
conditions
• decision making within three days
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Counter-guarantee from the
central budget
• Annual law on the central budget defines the rate,
cap amount and maximum of year-end guarantee
commitments (2011: 70%, HUF 20.9 billion,
HUF 500 billion). Netting is not possible.
• Ministry of Finance decree 48/2002. (28 December)
on the detailed rules of the state counter-guarantee
• Agreement of Garantiqa Hitelgarancia Zrt. with the
Hungarian State Treasury (documentation, payment
deadlines, etc.)
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State aid limits
• De minimis: gross grant equivalent max.
EUR 200 thousand in three years; max. guarantee
amount EUR 2.5 million (Commission’s Garantiqa
transparency resolution on 12 November 2008)
• General block exemption: max. HUF 2.5 billion/guarantee to
investment finance
• Guarantees at own risk: max. HUF 2.5 billion / debtor
• Within the Temporary Framework (till 31 December 2010)
– supporting enterprises in difficult position
– gross grant equivalent max. EUR 500 thousand
(vs. de minimis limit)
–max. 90% guarantee rate
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The effect of the crisis on the
guarantee institution
• deteriorating average portfolio quality
• growing number and rate of redemptions

higher provisions + smaller yield

negative effect on P&L
Main objective: stimulation of bank finance
Expectation of owners:
• to increase the portfolio
• long term sustainability after temporary losses
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How do we support SMEs
during the crisis?
• Updating of the bilateral agreements
– guaranteeing overdraft
– guarantees to restructured financing
– guarantees to Hungarian Development
Bank-refinanced loans
• Exploitation of EU possibilities (JEREMIE, CIP,
notifications under new legislation, influence on the
enterprise policy and on the competition rules, etc.),
lobbying through AECM and national authorities
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Further possibilities
Capital constraints:
Capital adequacy is sound (> 20%) but:
smaller yields to be compensated
excessive leverage ratio to be avoided
drastic fee increase to be avoided (strong market and CRD
constraints)
Suggested measures:
• strengthening the counter-guarantee background
(JEREMIE funds, EIF / CIP)
• subordinated debt: IFIs
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Contact:
Address:
1082 Budapest, Kisfaludy u. 32.
Phone:
(36-1) - 485-8300
Telefax:
(36-1) - 485-8320
E-mail:
[email protected]
Website:
www.garantiqa.hu
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