Part IV
Letters of Comfort Issued by Public Authorities, Asist. univ. dr. Simona GHERGHINA, Facultatea de Drept a Universităţii din Bucureşti
Following their extensive use in practice and their recent regulation by the new Civil code, the letters of comfort may be issued by public sector legal persons based on their power to enter into contracts. To the extent that such legal instruments are drafted in a manner that makes them similar to letters of guarantee, they are to be qualified as public guarantees. Consequently, when letters of comfort assumed by public authorities provide for explicit payment undertakings, their issuance shall be submitted to the legal limitations applicable to undertakings of public debt obligations. For all types of letters of comfort, irrespective of the obligations they are providing for, state aid regulations as well as those concerning limitation and efficiency of public expenditure are to be considered.
Key-words: letter of comfort, public funds, public guarantees, public expenditure, state aid, Civil Code
« back