IV. Analysys and recommendations

C. Loans

On the issue of loans more generally, the OSCE/ODIHR has noted in the past that the Law lacks sufficient provisions regarding loans.^[1]  For example, there is no mention of loan guarantees. It would appear legally possible for a loan by a political party to be guaranteed by someone who, after the political party defaults, then pays the creditor directly, which would amount to a donation. Although Article 9 on donations does ban write-offs of loans, it is not clear whether a default on a loan guarantee would be considered a ‘write-off’. It is recommended to clarify the Law accordingly, to ensure that such situations are covered as well.

[1] OSCE/ODIHR Final Report of the Limited Election Observation Mission to the Parliamentary and Early Presidential Elections of Serbia, 6 and 20 May 2012, p. 12.