The main goal of the Slovak Guarantee and Development Bank (SGDB), Inc. this year is more capital issued to effectively support small- and medium-sized enterprises (SMEs).
SGBD granted 268 bank guarantees to applicants last year and provided guarantees of more then one billion Slovak crowns (SKK). The year-to-year decrease in the number and volume of guarantees provided has two main causes, according to SGDB general manager Michal Krajcovic.
First is the focus on smaller guarantees for SMEs. SGBD had provided guarantees to bigger companies in the previous year, which was not the main objective of its establishment.
Changes in the guarantee mechanism was the second cause. The percentage of the loan guarantee has been reduced. Guarantees up to 90 % of a loan, frequently provided in the past, will no longer be available . This new approach should motivate banks to observe due prudence.
