The general rules of the guarantee are contained in AVHGA’s General Business Conditions. You can download the General Business Conditions in Hungarian language on this page:

General Business Conditions (HUN)

The legal form of AVHGA’s guarantee is first call, on-demand guarantee. It has an ancillary nature, meaning that its conditions are determined by the underlying financing contract. It can cover up to 80% of the loan amount. The minimum maturity is 91 days, the maximum is 25 years. The maximum amount of guarantee is 2.5 million €. The guarantee can be issued after an individual assessment by AVHGA, or as a portfolio guarantee under predefined conditions based on bilateral contracts with banks.


Which companies are eligible for guarantee?

The guarantee can be granted to domestic micro, small and medium-sized enterprises that are engaged in activities related to agriculture or rural development.

The guarantee can be applied for through the Foundation's financial partners. The company, together with its borrowing intention, needs to indicate its wish for the guarantee, and the bank directly manages the application towards AVHGA.

Types of guarantees

What kind of transactions can be guaranteed?

The Foundation provide guarantee for the following financial transactions:
- credit, loan, credit line, multi-purpose credit line
- general bank guarantee
- factoring
- financial leasing

The duration of the financal contracts shall be at least 91 days, but shall not exceed 25 years.


How much is the guarantee fee?

The Foundation’s non-profit business model allows keeping its fees at low level in order to accomplish the mission to promote access to finance.

There are three different types of fee for the guarantee:
- Preferential fees
- COSME guarantee fee
- Market premium

Guarantee as aid

According to EU legislation, the guarantee issued by the Foundation is treated as state aid if there is state counter-guarantee and the guarantee is issued on a preferential fee. For guarantees treated as state aid, the difference between the market premium (calculated in line with a methodology approved by the European Commission) and the actually payable fee represents the aid element of the guarantee.


Categories of the Foundation's guarantees

Currently the Foundation issues guarantees in the following two categories:

Guarantees qualified as state subsidy:

  • Agricultural guarantee: a guarantee issued by the Foundation for credit, loan, bank guarantee, financial leasing and factoring contracts, as well as general credit and bank contracts relating to agriculture and fishing provided that the guarantee is granted for a fee lower than the market-based guarantee fee.
  • General guarantee: a guarantee issued by the Foundation for contracts other than those relating to agriculture and fishing provided that the guarantee is granted for a fee lower than the market-based guarantee fee.

Guarantees not qualified as state subsidy:

  • Guarantees under market conditions: guarantees that cannot be granted as state subsidy, e.g. when the statutory conditions are not met or the maximum aid intensity or aid percentage is exceeded.
If a financing transaction is secured by guarantee and the financed enterprise fails to fulfil its payment obligations, the Foundation will effect payment instead of the enterprise to the financial institution corresponding to the percentage of the guarantee.