MEDIA Production Guarantee Fund will help European audiovisual companies trying to get access to bank financing.
The European Commission has launched a new fund - the MEDIA Production Guarantee Fund - aimed at helping European audiovisual companies to access commercial financing.
The fund, which will be implemented by Spanish support body Audiovisual SGR, will partially guarantee loans provided by local banks and financial institutions to film producers.
Audiovisiual SGR will adminster the $5.4m (€4m) fund from 2010-2013, contributing up to €2m over the period.
The decision to set up a new fund comes following a “Study on the Role of Banks in the European Film Industry”, with the Commission deciding that the most appropriate form of support would be to provide third party guarantees by means of a fund with expertise in the film industry.
The type of projects to be supported by the Fund must be compatible with those projects supported by the Commission’s MEDIA 2007 Programme, (the European Community’s support scheme for the audiovisual industry), including audiovisual works for TV or theatrical release, and one off projects or series qualifying as European, in fiction, animation and documentaries.
At least 50% of its financing must come from European sources.
Consultancy company Peacefulfish Productions Ltd., will act as the Fund’s European commercial agency on behalf of Audiovisual SGR.
Thierry Baujard, head of Peacefulfish said: “We are very pleased to support Audiovisual SGR in extending their successful guarantee model beyond Spain.”