Brno approved a shareholder loan of 350 million CZK to the Exhibition Grounds

According to the spokesperson of the Trade Fairs, Jiří Smetana, the new pavilion is needed due to the lack of covered exhibition areas for holding the largest trade fair events, namely the International Engineering Fair and the Techagro agricultural technology fair. The company is losing tens of millions of crowns because of this. At the same time, it will be multifunctional and can host cultural or social events, which can be attended by 2,500 to 5,000 people.

The pavilion will be designated as D and will connect to the current and conservation-protected Pavilion C, which is to be transformed into a facility for visitors to the events held in Pavilion D.

The city leadership justifies the loan by stating that it is beneficial for both parties. The city cannot find a better return on its money in the financial market, and on the other hand, the Trade Fairs will gain access to money at a low cost. The proposed interest rate is 1.8 percent; however, the recommendation is that due to the changing situation in the financial market, the interest rate should be fixed only during the preparation of the contract. The Trade Fairs are expected to repay it between 2020 and 2024.

The Trade Fairs are in good financial condition, having made a profit of 60 million crowns last year; this year it should be over 100 million crowns. They are currently repaying a loan taken out for the construction of the new and already operational pavilion, with the final installment due in 2022.