The goal of this paper is to research and explain the effects of state guarantees on businesses and corporations in an economy and the economy itself. In regards of effects that state guarantees have on corporations, this paper will use publications and other available information published by the Ministry of Finance that state the affairs of state guarantees in the past years and the impact that those state guarantees had. To present the most accurate research results, this paper will also look at the effects of guarantees on state budget and public debt. Analyzing and gathering information in regard of public debt and fluctuation of public debt, this paper will highlight the correlation between state guarantees and public debt. Furthermore, this paper will look into specific companies and industry sectors to further accentuate the effects of state guarantees and to show what are the key industries for the state. On the same note this paper will look into the state of granted and activated state guarantees and by that way give information about the health of the economy as the main factor when it comes to activation of guarantees. Finally, this paper will research and show the effects of state guarantees on public debt, public sector and the impact on the economy overall. By analyzing the economy through the years, especially in times of crisis like the one in 2008. This paper will show the possible correlation between the activation of state guarantees, public debt and the state of business of companies.