The activities of the Rural Credit Guarantee Foundation in Hungary

The Rural Credit Guarantee Foundation has operated since 1991 as the first credit guarantee institute in Hungary. Credit guarantee offered by the Foun dation has been very important in helping the small and medium size enterpr ises to receive credits and, in the countries in transition, where entrepre neurs have suffered a shortage of capital, the activity of such an institut ion appears indispensable. Realising its importance, the Hungarian governme nt has provided the Foundation, from this year (1999), a counter guarantee of 70%. The financial infrastructure in Hungary is reflected in the fact th at direct contact can be established with 8 credit institutes and 124 credi t co-operatives. Guarantees provided by the Foundation amount to Euro 134 m illion in respect of 5 393 guarantees.