Quote:
Originally Posted by 1andrew1
Why do I need to wake up? I just posted a link that supported Damien's statement concerning Russian funding.
Commercial banks are concerned with two things when they lend money:
1) Financial risk - will they get it back? (If they don't it reduces their profits.)
2) Reputational risk - will the bank's reputation be damaged (which could result in a loss of business from other customers and therefore a reduction in profits.)
Similarly, a political party that borrows from a bank based in a country like Russia needs to think about the reputational damage caused to the party by such a loan.
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1) More than likely as NT recieved £5m from elsewhere (not Russia).
2) Reputational risk was lost a few years ago leading to Countries throught the western world having to suffer from austerity programs from their respective Governments. Think for a minute, where did the money go? It didn't disappear, it ended up in someone's pocket.
Russia perhaps?