Malta Court Orders Four Companies to Pay Vatican Bank €24.1 Million over Budapest Property Investment

(ZENIT News / Rome, 11.10.2026).- The Vatican Bank has secured a significant legal victory in Malta, where a civil court has ordered four investment companies to pay it €24.1 million in compensation over the handling of a property venture in Budapest. The ruling, delivered at first instance after litigation that began in 2017, represents an important development in the Institute for the Works of Religion’s efforts to recover losses and establish accountability for past investment decisions.

In a statement issued on 6 November, the Institute, commonly known as the IOR, said Malta’s First Hall of the Civil Court had upheld its position in the dispute concerning the Kappa fund and the redevelopment project involving Budapest’s Exchange Palace. The defendants are Optimum Evolution Fund SIF, Optimum Asset Management S.A., Futura Investment Management Limited and Futura Funds SICAV plc.

The court found that all four companies had breached their fiduciary duties towards the IOR under Article 1124A of the Maltese Civil Code. They were held jointly liable for damages of €24.1 million, together with interest at an annual rate of 8% from the date of the judgment until payment.

At the centre of the dispute was the structure through which the Budapest property investment was managed. According to the court’s findings, the use of an intermediary entity, Cougar, in the transaction resulted in an unjustified transfer of value to the detriment of the Vatican institution. The judgment therefore addressed not simply the financial outcome of the project, but the responsibilities owed by those entrusted with managing the investment.

The ruling also rejected the companies’ claims against the IOR in their entirety. In particular, the court found that the Vatican Bank had not breached its obligations towards the Kappa fund and was not required to provide additional capital, given the prior breaches of fiduciary duty by the other parties.

For the IOR, this is the first time a court has examined the substance of the dispute and fully recognised its arguments, rather than leaving the case at the level of procedural or preliminary questions. The Institute said the judgment confirmed the correctness of its conduct and rejected the defendants’ interpretation of events.

The decision could also have consequences beyond Malta. The IOR pointed to its potential relevance for related proceedings still under way in other jurisdictions, although the precise legal effect will depend on the cases concerned and the decisions of the courts hearing them.

The judgment is a first-instance ruling and should be understood within that procedural context. Nevertheless, after nearly a decade of litigation, the award marks a substantial step in the Vatican Bank’s attempt to recover money lost through the Budapest investment. The IOR said it would continue to pursue its rights before the competent authorities and reiterated its confidence in the work of the judiciary.

The case forms part of the wider effort to strengthen financial accountability at the Vatican institution, whose credibility depends not only on the sound management of its resources but also on its willingness to seek redress when it believes those resources have been mishandled.

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