Article 26(6) of the LPP in principle prohibits donations to political parties by legal entities financed from the state budget or with state capital. The same rule is contained in Article 38(3) of the EC which further bans donations by legal entities which, one year before the start of the electoral period, have carried out activities financed or paid with public means. In this respect, concerns have been raised by a number of interlocutors about an insufficient separation of state interest and political financing. While this could not be verified by the Venice Commission and OSCE/ODIHR delegation, it is important to stress that it is vital for the credibility of a democratic process that private donors of political parties are clearly separated from state business. In this context, the delegation was informed about draft legislation which had been submitted to Parliament according to which companies which benefitted from contracts with the state should be banned from making donations during a period of three years, which appears reasonable in the current context. It is recommended that both Article 26(6) of the LPP and Article 38(3) of the EC are amended so as to prohibit legal persons involved in contracts or public tenders with any public institution from making donations to political parties or electoral candidates for a specified period, for example, at least for three subsequent years. Such a prohibition should also apply to in-kind donations, loans, credits and cancellation of debts, in order to prevent circumvention of the rules.