The Republic of Hungary and the Republic of Paraguay, hereinafter referred to as "the Contracting Parties",

DESIRING to intensify economic cooperation to the mutual benefit of both countries,

INTENDING to create favourable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party,

RECOGNIZING that encouragement and protection of investments on the basis of the present Agreement stimulates the initiative in this field, .

Have agreed as follows: