12/07/2013 - Good news for French international sales companies which will soon be able to benefit from refundable advances from the IFCIC

After intense lobbying based on the observation that the minimum guarantees paid for French films are higher than those for distribution in theatres and video, but that exports is the only sector not integrated in the national system for the funding of cinema, French international sellers won their case. The CNC indeed entrusted the IFCIC (Institut pour le Financement du Cinéma et des Industries Culturelles) with the creation of a Fonds d’Avances Remboursables pour l’Acquisition, la Promotion et la Prospection de films à l’étranger (FARAP – (lit.) a Fund for Refundable Advances for the Acquisition, Promotion and Prospection of films abroad).

Equipped with 8 M€, the fund, which will begin its activities in September, will aim to compensate the structural cash flow tensions of international sales companies and facilitate their most ambitious acquisitions, especially for films that are “difficult” to promote abroad and contribute to cultural diversity.

The fund will offer advances as high as 600,000 euros over a period of 12 to 36 months, which will come with a potential reduction clause of up to 25% of the total depending on the quality and success of the financed investment programme.  

The IFCIC secures bank loans given to cinematographic and audiovisual producers, technical industries and theatre operators, as well as companies carrying out activities in the cultural sector. At the end of March 2013, these outstanding loans reached over 450 million euros for the cinema industry.  

(Translated from French)