The demand for state loan guarantees has been declining every year, with banks having granted only nine loans as part of the scheme, while the latest, fifth call for applications saw no interest whatsoever, the Finance Ministry said.

Out of the available EUR 400m quota, only 5.12% or EUR 20.5m has been spent. The demand has also declined as the circumstances changed considerably since 2010, which is why there is no need for state guarantees, the ministry added.

The original act on state loan guarantees, adopted in the autumn of 2010 at the peak of the economic crisis, envisaged no time limits for the scheme and envisaged the state issuing up to EUR 1bn in loan guarantees for investment projects.