Portuguese company demands huge compensation from Hungary

According to origo.hu, the first phase of the international arbitration proceedings launched due to the dispute between the Hungarian state and the Portuguese DanCake has been finished: International Centre for Settlement of Investment Disputes ruled that Hungary, through the judgement of the Budapest Court, violated the principles of the protection of foreign investments, the company said.

After the decision, the process reached the final stage which aims to financially compensate the Portuguese company, DanCake said. The company claims a compensation total of EUR 110 million (HUF billion).

The Washington-based International Centre for Settlement of Investment Disputes belonging to the World Bank arbitrates disputes related to international investments.

According to the company, there is no place an appeal against the judgement. The company said this is the first time when Hungary has lost a lawsuit in the international forum, so the judgement is an important milestone in the process that aims to ensure the adequate protection of the foreign investments in the country.