In a statement, the chairman of the Board of Directors of the four Mutual Guarantee Societies (SGM), Joaquim Pinheiro, noted that this marks the conclusion of a “decisive stage for strengthening the solidity, increased efficiency, and coherence of the public guarantee system in Portugal.”
The merger process was initiated in November 2023, at the proposal of Banco Português de Fomento (BPF), the main shareholder of the four SGM. It will lead to the incorporation of Lisgarante, Garval, and Agrogarante into Norgarante, which will take over the legal continuity of the National Mutual Guarantee System (SNGM).
According to the statement, the merger dossier, which has since been submitted to the Bank of Portugal (BdP), “is currently being evaluated by the competent supervisory and regulatory entities, which is a necessary condition for the formal conclusion of the process,” with completion expected “in the coming months.”
The aim, with a single public guarantee operator, is to ensure a “more coordinated and robust operation” of the national mutual guarantee system, “increasing economies of scale and synergies and promoting greater uniformity of procedures and resource optimization.”
The objective, highlighted Joaquim Pinheiro, is to enhance “the response capacity to the financing challenges of the Portuguese economy, particularly of micro, small, and medium-sized enterprises.”
For the CEO of the four SGMs undergoing the merger, José Furtado, this is a “structural reform” aimed at “embarking on a new stage” in the life of the SNGM, “simpler in its operational architecture but equally demanding in terms of technical rigor and oversight of guaranteed operations.”
“The merger of the SGM represents a decisive step in the institutional consolidation of the SNGM, with expected positive impacts on administrative simplification, reinforcement of territorial proximity, consistency of analysis criteria, and improved relationships with financial and business partners,” the statement reads.
The newly formed entity from the merger will “maintain its focus on proximity to the business sector, speed in granting guarantees, and enhancing complementarity with European financial instruments, consolidating its position as a fundamental mechanism for leveraging financing access for SMEs,” it emphasizes.
In the first half of this year, the volume of guarantees issued by the SNGM grew by more than 60% year-on-year, “reflecting the mobilization of various lines deemed strategic for real economy financing,” such as BPF InvestEU, BPF Invest Export, and, in the coming days, the Fomento PT2030 – Guarantees line.
“This performance largely reflects the mutual guarantee’s ability to adapt to the strategic objectives defined by the BPF, reinforcing its role as a public policy pillar supporting investment, innovation, and the competitive transition of Portuguese companies,” the statement reads.
