Hungary > Legal market overview
The trend for controversial legislation in Hungary spilled over into 2011, with the government’s decision to allow debtors to repay mortgages held in foreign currency at 20% below the market rate, while domestic banks were also put under pressure by the downgrade of sovereign debt to junk status. Neither of these factors helped an ailing financial market, and, as a result, there was a distinct shortage of higher-end transactional mandates for law firms, particularly in project finance and capital markets. With many multinationals reacting to circumstances either by consolidating their operations in Hungary or else exiting the market altogether provided leading law firms with oppurtunities to act on mergers and acquisitions pertaining to local subsidiaries. Meanwhile, smaller firms experienced an uptick in M&A for SMEs as a result of several initiatives devised by Viktor Orbán’s government to foster entrepreneurial activity.
A sluggish year for real estate saw the suspension of a number of retail and office development projects, leaving the modicum of significant deals to be handled by leading firms such as CMS Cameron McKenna LLP and Andrékó Kinstellar. Local powerhouses Nagy és Trócsányi and Szecskay Attorneys at Law continued to lead the way in dispute resolution, which has been one of the buoyant practice areas during the financial crisis. The departure of some foreign businesses has produced challenges and opportunities for key independent firms including Oppenheim, which has been working to build its group and international client base since the departure of Freshfields Bruckhaus Deringer LLP and Lakatos, Köves and Partners, which has seen a drop-off since Clifford Chance left Hungary. Simándi Bird & Bird was renamed Eördögh Bird & Bird after Richárd Eördögh was appointed as the new managing partner to replace Andrea Simándi, who joined Microsoft in January 2012.