By Gergely Szakacs and Krisztina Than
BUDAPEST, Nov 19 (Reuters) - Nine embassies in Hungary warned in a joint letter that recent instances of what they called "non-transparent behaviour" would discourage foreign investment and hamper growth in the central European country.
The release, sent by the United States, Britain, Belgium, France, Germany, Japan, Norway, Switzerland and the Netherlands late on Wednesday, said such behaviour may hinder foreign investment -- key to expected future growth.
"It is therefore with great concern that we hear of significant new instances of non-transparent behaviour affecting investors in such areas as public utilities, broadcasting and elements of the nation's transport infrastructure," it said.
Last month Prime Minister Gordon Bajnai said his government would mediate in a dispute between Suez Environnement (SEVI.PA: Quote, Profile, Research) and the city of Pecs which took control of a water utility company in which Suez had a minority stake [ID:nLR453068].
The letter did not name specific cases or companies involved and the British Embassy said in an emailed response to Reuters, "We cannot give any specific examples of non-transparent behaviour as cases may still be subject to legal procedures."
"We are genuinely concerned that at a time when the government is trying to promote an anti-corruption programme, these worrying reports surfaced. They affect our investors and make them less inclined to do business here in the future."
"That is not good for them or for Hungary," it said.
Hungary is in the throes of a deep recession and expects its economy to contract by 6.7 percent this year.
Read more:
http://uk.reuters.com/article/idUKLJ41850720091119?sp=true
