Banking & Finance Focus Group

Hungary has a very solid, stable and profitable banking system. Numerous Western European and US financial institutions (HVB, ING, Raiffeisenbank, Commerzbank, Citibank, etc.) are represented in the domestic financial and capital markets through their subsidiaries or branches.

Since 1991, Hungary’s banking system has been subject to regulatory and supervisory framework based on principles and guidelines of the Bank for International Settlements. The laws for banking, capital markets, insurance, investment funds and pension funds are totally compliant with EU law and with uniform banking standards.

In accordance with the continuous liberalization of restrictions on capital movements in recent years, effective from mid-June 2001, the local currency (Hungarian forint; “HUF”) is fully convertible, not only in terms of current transactions, but in terms of capital transactions as well. Non-residents have unrestricted access to Hungarian short-term securities, HUF-denominated accounts and the on-shore derivatives market, and residents have unrestricted access to off-shore financial services and short-term foreign securities.

Our Legal Services

Our Banking and Finance Focus Group offers our clients legal advice on all aspects of the banking and securities markets. We are experts in drafting and advising on various finance contracts and collaterals attached thereto, in negotiations and setting up structures for all types of project finance and syndicated loans. We offer regulatory advices for our clients, mostly international banks, which provide their services not only in Hungary but also in other countries and provide legal counselling regarding work-out of bad debt.

We provide professional services especially in the following areas:

• legal counselling regarding regulatory matters;
• advising on most advantageous means to structure transactions or new products and services in order to meet applicable banking and other financial regulations;
• negotiating and drafting credit facility agreements including single bank loans and credit facilities (ranging from short-term unsecured facilities to global banking facilities involving multi-jurisdictional collateral), bilateral loans, syndicated loans, and participations, revolving loans, letter of credit facilities, and/or bid loan facilities;
• representing financial institutions in their capacities as agents, senior lenders or other syndicate members, sellers or purchasers of participations, and assignors or assignees of direct loan interests;
• structuring cross-border facilities, both secured and unsecured, on behalf of financial institutions and corporate borrowers, as well as advising on trade-financing transactions.
• representing financial institutions, equity funds, and corporate entities in connection with the financing of mergers, acquisitions (whether of equity or of assets), management and highly leveraged buyouts, restructurings, and other similar transactions;
• representing purchasers, lessees, lessors, lenders, and other participants in a broad range of transactions to finance the acquisition of transportation, manufacturing, high-tech, and industrial equipment;
• negotiating and drafting project finance transaction agreements especially in emerging markets in relation to a broad spectrum of motorway and road projects, power sector projects and mining transactions;
• tailoring structures to specific legal, regulatory and tax requirements across a wide range of industries and asset types;
• representing both financial institutions (in their various capacities as arrangers, underwriters, placement agents, investors, etc.) and corporate entities (in their capacity as issuers) in connection with the issuance of bonds, notes, commercial paper, and other capital market instruments;
• representing a full range of parties to debtor/creditor disputes, bankruptcy, and other insolvency-related proceedings on a regional, national, and international basis; and
• assisting clients in the development, financing, and acquisition of all forms of electronic services and products and in structuring internet facilities consistent with global commercial, securities, and banking laws;