KAN, the Israeli national broadcaster, has confirmed it will pay the 12 million Euro guarantee required by the EBU.
KAN has confirmed this afternoon that it has reached an agreement with the Ministry of Finance to pay the 12 million Euro guarantee required by the European Broadcasting Union. The station has worked with the Ministry of Finance today to come to a resolution regarding the payment of the guarantee, had KAN not payed the guarantee Israel would have been stripped of its right to host next years Eurovision Song Contest.
KAN did not publicly confirm how it will be paying for the guarantee, however local media reports that the broadcaster will take out a loan for the required amount. In return, the Finance Ministry will commit to cover the loan amount if the competition is ultimately not held in Israel due to extenuating circumstances such as war or boycott.
Concerns about the 2019 contest emerged earlier this week when the head of the Israeli broadcaster, KAN, made an appeal to the Israeli Prime Minister for assistance in satisfying the EBU’s requirement for a €12 Million guarantee to be placed in a Swiss bank account to secure the contest. The deadline provided by the EBU for the funds to be deposited is today.
The Prime Minister, Benjamin Netenyahu threatened to shutdown the Israeli national broadcaster if it did not pay the guarantee on time. However, KAN argued that the Israeli state should pay for the guarantee as it would be forced to axe a number of staff and productions if it was required to meet the sum independently.
Israel won the right to host the Eurovision Song Contest 2019 after Netta was victorious in the 2018 edition in Lisbon, Portugal with the song Toy. This was Israel’s fourth victory in the history of the contest.