The Sydney Gay and Lesbian Mardi Gras appears to have been saved by a mystery member of Sydney's gay community who has loaned Mardi Gras A$400,000 to pay off crippling debt as organisers discover today if ANZ Bank will accept five guarantors for a A$250,000 overdraft, according to the Sydney Morning Herald.

Last Thursday, the Mardi Gras board's president, Julie Regan, made a public plea for help after the New South Wales state government rejected its approaches to save the annual event. The Mardi Gras was likely to be placed in administration if guarantors for the overdraft could not be found by Sunday.

Although the annual Mardi Gras parade, party and Sleaze Ball were not in the clear yet, Regan said that their prospects looked "a lot better" than they did a week ago.

Regan revealed that it's not an even spread between the five guarantors, including both individuals and community organisations, but it's sufficient to cover the A$250,000 overdraft.

Each of the five guarantors and the mystery lender will sit on a planned Mardi Gras financial review committee.

The guarantors include the AIDS Council of NSW, businessman Ewan Samway and community group Pride.

The AIDS council president, Adrian Lovney, stressed the A$50,000 "guarantee will not be executed over government funds, but over members' own funds which have been principally raised from sources such as sales of goods and fundraising."

Similarly, Pride co-president Chris Maynard said the organisation, which generated its funds from sell-out New Year's Eve dance parties, had accumulated enough funds to become a guarantor for A$50,000.

Regan blamed Mardi Gras' financial woes on several factors including a 300 percent leap in insurance premiums, a drop in numbers at the annual fund-raising party and a 30% drop in visitors.

The Mardi Gras hope to go forward with planning future events including the Sleaze Ball in October and the 25th Silver Jubilee Mardi Gras in March if the guarantors are approved by the bank.

Now in its 25th year, the Mardi Gras began as a civil rights march and is now one of the world's largest Pride festivals. The event has also become one of the city's most lucrative cultural events, contributing more than A$100 million to Sydney's economy each year.