InvestEU guarantees to mobilise close to EUR 1.49bn of SME credit

European Union credit guarantees in the framework of the InvestEU programme will pave the way for outlays of close to EUR 1.49bn for SMEs, Máté Loga, the state secretary for economic strategy at the National Economy Ministry, said at a press conference on Monday.

Loga said the InvestEU guarantees would reduce financing risks for local SMEs and raise the scale of SME lending stock over 20pc of GDP by 2030.

István Attila Szabó, the head of Garantiqa, said the guarantor could use the InvestEU guarantees for surety of EUR 1bn. The guarantee products will be available from CIB Bank, MBH Bank and Oberbank initially, but at more lenders later on, he added.

The guarantees will back credit for investments in the digital and green transitions, regional and rural development, the farm and food industry, supply chain developments, efficiency improvements and R+D, he said.

Garantiqa’s surety stock was close to HUF 690bn at the end of August and could exceed HUF 1,000bn (EUR 2,49bn) by year-end, he added.

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