1. Nothing in this Agreement shall be construed to prevent a Contracting Party from adopting or maintaining measures relating to financial services for prudential reasons, such as:
(a) the protection of Investors, depositors, policy-holders or persons to whom a fiduciary duty is owed by a financial service supplier, and
(b) ensuring the integrity and stability of a Contracting Party's financial system.
Where such measures do not conform with the provisions of this Agreement, they shall net be used as a means of avoiding the obligations of the Contracting Partics under this Agreement
2. (a) Nothing in this Agreement shall be construed to prevent a Contracting Party from adopting or maintaining measures that restrict transfers - especially relating to cross-border capital transactions and Article 7 - where the Contracting Partly experiences serious balance of payments difficulties, or the threat thereof and in cases where, in exceptional circumstances, movements of capital cause or threaten to cause serious difficulties for macroeconomic management, in particular, monetary and exchange rate policies.
(b) Measures referred to in paragraph (a) of this Article shall:
(i) be equitable, in good faith and neither arbitrary nor unjustifiably discriminatory;
(ii) not exceed those necessary to deal with the cases set out in paragraph (a) above;
(iii) be temporary and shall be eliminated as soon as conditions permit,
(iv) be promptly notified to the other Contracting Party; and
(v) avoid unnecessary damages to the commercial, economic and financial interest of the other Contracting Party.
Such measures shall be taken in accordance with other international obligations of the Contracting Party concerned, including those under the WTO Agreement and the Articles of Agreement of the International Monetary Fund.
3. Nothing in this Agreement shall be construed:
(a) to prevent any Contracting Party from taking any actions that it considers necessary for the protection of its essential security interests which may include interests and measures deriving from its membership in a customs, economic, or monetary union, a common market or a free trade area:
(i) relating to the traffic in arms, ammunition and implements of war and to such traffic and transactions in other goods, materials, services and technology undertaken directly or indirectly for the purpose of supplying a military or other security establishment,
(i) taken in time of war or other emergency in international relations, or
(iii) relating to the implementation of national policies or international agreements respecting the non-proliferation of nuclear weapons or other nuclear explosive devices, or to fissionable materials or the materials from which they are derived, or
(b) to prevent any Contracting Party from taking action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
4. A Contracting Party may deny the benefits of this Agreement to an Investor of the other Contracting Party that is a Legal Person and to Investments of that Investor, if investors of a third state own or control the Investor of the other Contracting Party or the Investments, and the denying Contracting Party:
(a) does not maintain diplomatic relations with the third state, or
(b) adopts or maintains measures with respect to the third state that prohibit transactions with such Investor and its Investments or that would be violated or circumvented if the benefits of the Agreement were accorded to the Investments of Investors
5. A Contracting Party may deny the benefits of this Agreement to an Investor of the other Contracting Party that is a Legal Person of such Contracting Party and to its Investments, if that Legal Person has no substantial business activities in the Territory of the denying Contracting Party or if persons of the denying Contracting Party own or control that Legal Person.
6. All references in the Agreement to measures of a Contracting Party shall include measures applicable in accordance with European Union law in the Territory of that Contracting Party pursuant to its membership in the European Union. References to "serious balance-of-payments difficulties, or the threat thereof," shall include serious balance-of-payments difficulties, or the threat thereof, in the economic or monetary union of which a Contracting Party is a member.
Article 17. Final Provisions, Entry Into Force, Duration, Termination and Amendments
1. This Agreement shall apply without prejudice to the obligations deriving from Hungary's membership in the European Union, and subject to those obligations. Consequently, the provisions of this Agreement may not be invoked or interpreted neither in whole nor in part in such a way as to invalidate, amend or otherwise affect the obligations of Hungary arising from the Treaties on which the European Union is founded.
2. The Contracting Parties shall notify each other through diplomatic channels that their internal legal procedural requirements for the entry into force of this Agreement have been complied with. This Agreement shall enter into force 60 (sixty) days after the receipt of the last notification.
3. This Agreement shall remain in force for a period of 10 (ten) years and afterwards shall continue to be in force unless either Contracting Partly notifies in writing the other Contracting Party through diplomatic channels of its intention to terminate this Agreement. The notice of termination shall become effective 1 (one) year after it has been received by the other Contracting Party but not earlier than the expiry of the initial period of 10 (ten) years.
4. In respect of Investments made prior to the termination of this Agreement, the provisions of this Agreement shall continue to be effective for a period of 10 (ten) years from the date of termination.
5. This Agreement may be amended by written agreement through diplomatic channels between the Contracting Parties. Any amendment shall be an integral part of the Agreement and enters into force in the same manner as specified mn paragraph 2 of this Article.
Conclusion
In witness whereof, the undersigned duly authorized have signed this Agreement.
Done in duplicate at Muscat on this 02 day of February, 2022 corresponding to 30 day of Jumad 2, 1443 in the Arabic, Hungarian, and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.
For the Government of the Sultanate of Oman
For the Government of Hungary