enjoy the legacy of a good relationship with the departing firm which lends itself to a steady flow of referrals.
‘As the international firms leave they must increasingly
rely on the top independent firms rather than relying on
existing networks and connections’ says Berethalmi. ‘Our
clients appreciate the model as it allows us to be flexible,
progressive and react quickly to situations without having
to refer things back to London or New York’ he adds.
Despite a struggling economy, deal flow is slowly
starting to increase. Hungary was hit badly when the
recession first swept across the CEE because it had such
a weighty dependence on foreign capital to keep the
economy moving, and it consequently has one of the
largest public deficits in the EU. It did however successfully apply for a rescue package from the IMF and EU.
Recent legislative changes have put increased liquid-
ity at the top of the agenda. In the wake of the down-
turn, the Hungarian legislator adjusted the bankruptcy
procedures so that it is fundamentally easier to avoid
liquidation and to enter into a bankruptcy agreement
with creditors. The Hungarian parliament also adopted
a new bank rescue package at the height of the reces-
sion aimed at stabilizing the market and financial sys-
tem, while only banks with a registered seat in Hungary
are now eligible for state guarantees.