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letter of comfort

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Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Financial Dictionary

Letter of Comfort

A letter issued to a lending institution by a parent company acknowledging the approval of a subsidiary company's attempt for financing.

Investopedia Commentary

The 'letter of comfort' in no way guarantees the loans approval for the subsidiary company. It merely gives reassurance to the lending institution that the parent company is aware and approves of the situation.

See also: Bank, Creditor, Interest, Loan

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