New guarantee fund for producers promoted in Berlin
Audiovisual SGR, a mutual guarantee company for the audiovisual sector, was present last week at the 62nd Berlinale to promote its Film Guarantee Fund. The fund, which aims to facilitate access to credit for the projects of independent European producers, has been supported with €4m from the European Commission as well as €2m from the Spanish audiovisual producers’ rights body, the Entitad de Gestión de Derechos de los Productores Audiovisuales (EGEDA).
Beneficiaries of this new fund are to be producers and production companies from the 32 countries of the MEDIA Programme (European Union, Island, Norway, Switzerland, Liechtenstein, and Croatia) who need funding for an audiovisual project, for either television or cinema, and whose budget shows that less than 50% of its financing will come from European sources. The loan requested from the banking entity will have to be linked to a deduction from pre-sales contracts, future subsidies or aid, so that the bank lends out money thanks to Audiovisual SGR’s guarantee.
It has been calculated that, thanks to the multiplying effect of this type of mechanism, up to €50m worth of loans could be generated and thus help to strengthen the industry and to stimulate co-production, all the while incentivising bank participation by sharing the risk of conceded loans.
To find out more, please contact Mónica Carretero (monica.carretero@audiovisualsgr.com).
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