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The Consortium for the Promotion of Music has resorted to a bank loan amounting to 900,000 euros due to “specific liquidity problems” and the need to face ordinary and operational expenses, including payment to some suppliers. For this, the municipal body that protects the Galician Symphony Orchestra (OSG) has put out to tender a short-term credit operation under the modality of cash advance. Three financial entities with an open office in the municipality are invited to participate in the contract and may not exceed December 31, 2021.
The Consortium will use the funds from this loan to have liquidity as long as it does not receive the annual contributions that finance the Symphony from the public administrations (Council, Xunta and Diputación). The purpose of the award is, according to the tender specifications, “to enable the obtaining of economic and financial resources sufficient to meet expenses, both ordinary and operational or current operation as well as extraordinary and of capital or investment ”.
The OSG does not usually resort to bank loans, but it has done so on some occasion, about a decade ago, due to “specific liquidity problems,” says the manager of the Music Consortium, Andrés Lacasa. “The item is generic, we will use it when necessary, regardless of expenses,” he adds.
The Symphony’s works council considers the “emergency” of credit “necessary”, mainly due to the increase in expenses in a proportion greater than income. “We understand these operations even though they don’t seem right to us. But it is an extraordinary emergency. Invoices from suppliers are accumulating and we understand the emergencies of companies ”, comments the president of the workers’ representative body, Mihai Tanasescu.
The committee recalls that the Council withdrew 300,000 euros from the budget of the GSO in recent months to have funds for the second edition of the rescue plan for the damage caused by the health pandemic, the Presco, an amount that will be replaced. In the Atlantic Marea mandate, Tanasescu adds, the local government also diverted 550,000 euros to urgent cash needs and later returned the amount to the Consortium.
The stage productions at the Opera Palace and the Coliseum (where the orchestra traveled due to the pandemic last year), sheet music rental, transportation of elements, loading and unloading and copyright are concepts that involve significant disbursements for the Consortium over a year, points out the president of the works council.
Part of the income that the municipal body will obtain in 2021 will come from the Xunta, which last week signed two agreements with the Council that represent a total injection of 3.5 million euros for its ordinary operation and for the celebration of different framed activities at the Xacobeo 21-22.
The Consortium and the concessionaire of the Palace, the company Sociedad de Fomento y Desarrollo Turístico, of the Comar group, agreed on a new rental contract until 2023 for which the Symphony will pay about 200,000 euros less than in other years for the use of the venue. Instead, the body will have to pay 600,000 euros to the manager for the invoices for the use of the facility that it did not pay for last year when it had to temporarily move to the Coliseum; in this way it prevents the conflict caused by its use from ending up in court.
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