E. Rules on the financing of political parties

1. Donations

In addition, loans may also be guaranteed by third parties. If the party originally having received the loans then fails to pay the loan back, that third party will then pay the creditor directly under the terms of the loan guarantee, effectively giving the political party a donation. Consideration should therefore be given to including a specific provision regulating loan guarantees in the draft Act, which shouldinclude reporting rules as to the receipt and repayment of such loans.