Brief considerations on the financial crisis and insolvency of the administrative-territorial units in the view of the new regulations

• Author: Elise Nicoleta Valcu - Ionel Didea - George Popa
• Position: Faculty of Law and Administrative Sciences University of Pitesti, Pitesti, Romania - Faculty of Law and Administrative Sciences University of Pitesti, Pitesti, Romania - "Ovidius" University, Constanta
• Pages: 248-253

AGORA International Journal of Juridical Sciences, www.juridicalj ournal.univagora.ro

ISSN 1843-570X, E-ISSN 2067-7677

No. 4 (2013), pp. 248-253

248

BRIEF CONSIDERATIONS ON THE FINANCIAL CRISIS AND

INSOLVENCY OF THE ADMINISTRATIVE-TERRITORIAL UNITS IN

THE VIEW OF THE NEW REGULATIONS

E.N. Vâlcu, I. Didea, G. Popa

Elise-Nicoleta Vâlcu

Faculty of Law and Administrative Sciences

University of Piteti, Piteti, Romania

* Correspondence: University of Piteti, Faculty of Law and Administrative Sciences, 71

Republicii Blvd., Piteti, 110014, Romania

Email: elisevalcu@yahoo.com

Ionel Didea

Faculty of Law and Administrative Sciences

University of Piteti, Piteti, Romania

* Correspondence: University of Piteti, Faculty of Law and Administrative Sciences, 71

Republicii Blvd., Piteti, 110014, Romania

Email: prof.didea@yahoo.com

George Popa

“Ovidius” University, Constana

* Correspondence: George Popa, 1 Aleea Universitii St., Constana, Romania

Abstract:

The reason for which the Government Emergency Ordinance No 46/2013 regarding

the financial crisis and insolvency of administrative-territorial units is the fulfillment of the

obligations assumed by Romania in order to reduce the overdue registered by the

administrative-territorial units to their suppliers of goods, services and works. The article

aims to analyze the general framework and the procedures regarding the coverage of the

liability and the financial recovery of the administrative-territorial units which are in a

financial crisis or in insolvency, relating to the general framework for insolvency, namely

Law No 85/2006, as well as the Law No 273/2006 regarding local public finances updated

and amended by Law No 13/2011.

Key words: financial crisis, insolvency, financial recovery plan, main credit

release authority, bankruptcy judge, National Register for the Insolvency Cases of the

administrative-territorial units

Introduction

The normal performance of the commercial activity requires that all professionals

who have assumed contractual obligations to respect them according to their provisions. The

nonperformance of the obligations, in general, especially of the financial ones, at their

expiration, produces negative consequences not only for the creditor, but also for the other

merchants with whom the creditor has legal relations, in the meaning that the nonpayment of

the obligations assumed according to the contract by the debtor have chain consequences

also for other merchants, finally leading to a financial blockage with serious effects against

the security of the credit, one of the economic pillars.

The nonperformance of the financial obligations at their expiration can be determined

by the lack of liquidities of the merchant-debtor caused by financial difficulties.