HUNGARY Law and Practice Contributed by: Szabolcs Mestyán, John Fenemore, Balázs Rokob and Nóra Kertai, Lakatos, Köves & Partners
4.2 Current Legislative Proposals The Hungarian government has mandated the drafting of a new Insolvency Bill, expected to be published in 2025. This development may have an effect on trans - actions concerning the purchase, sale, lease or debt financing of an aircraft registered in Hungary or involv - ing a domestic party.
by adopting executive decrees, and may take other extraordinary measures. FDI Rules Hungary has enacted temporary FDI rules that restrict foreign investments in entities registered in Hungary that are engaging in certain activities specified by the government. According to the relevant Act LVIII of 2020 (the “FDI Act”) and Government Decree 561/2022 (XII 23) (the ”FDI Decree”), notification requirements apply to foreign investors that intend to acquire shares in such entities incorporated in Hungary. In certain exceptional cases, purely EU-domiciled entities also fall into this category. Transactions which result in the acquisition/encum - brance of certain assets of a Hungarian target falling under the scope of the FDI Act and the FDI Decree are subject to notification requirements and the approval of the Minister for National Economy. To the extent that such approval is denied, the transaction is con - sidered void.
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