City Gives Carnaval Loan Reprieve

City Gives Carnaval Loan Reprieve

Quebec City (Quebec) 30 August 2015 – Because of the poor state of its finances, the Carnaval de Québec has requested and obtained a reprieve to repay a loan it had been granted by the City.

In 2011, Québec City granted a loan of $ 1.5 million to the Carnaval, to enable it to acquire a building on rue Joly. The organization has used this amount to demolish the existing building and to rebuild a new one offering enough space to consolidate all its personnel and equipment.

The loan was made by the City for a 15-year repayment term. It was then agreed that the Carnaval would reimburse the full amount at the rate of a payment of $ 100,000 per year.

Carnaval has honored its commitments in 2013 and 2014 in carrying out payments totaling $ 200,000.

“Because of deficient results for the year ending April 30, 2015, the Quebec Winter Carnival has sent a request to the City of Québec to request a deferral of the redemption date scheduled for June 2015,” reads the management decision.

The City responded positively to the request, agreeing to receive the next payment in June 2016 and carry the amount due on the remaining years of the term.

So instead of $ 100,000, the annual amount for 2016-2027 will be $ 108,334 rather.

The postponement could cost just over $ 5,000 in interest charges to the Carnaval.

The Labeaume administration hopes for a quick turnaround to finance the event.

With the Government of Québec, the City recently awarded a $ 500,000 emergency aid and requested the complete overhaul of the board of the organization.

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