After the second edition of the CinemaHora Forum, the head of the National Film Center of Moldova discussed the synergies between film, society and the economy

(© Rromir Imami)

The second edition of the CinemaHora Forum, organised by the Moldovan National Film Center, was held in Chișinău on 28-29 November 2024, bringing together film-industry professionals from 23 countries, including 52 international attendees and about 90-100 local participants. Under the thematic banner “FILM 360° - Broaden Horizons”, this year’s event featured seven engaging panel discussions, offering a platform for the film professionals to explore the synergetic relationship between film, society, the economy and education. Cineuropa spoke with Valentina Iusuphodjaev, the head of the Moldovan National Film Center, who shared insights into the Forum’s objectives, the significance of the chosen theme and the importance of such events in driving advancements within the film landscape.

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Cineuropa: At this year’s CinemaHora Forum, one of the topics was focused on the synergies between the film industry, economy and regional development. Could you elaborate on your decision to highlight this topic?
Valentina Iusuphodjaev: Lately, discussions about cinema have centred more on funding than on its impact. However, we need to consider the broader impact of cinema, including its economic value. Festivals, for instance, attract visitors, boost local spending and contribute to regional economies. Yesterday's example from Greece, presented by Thanos Stavropoulos, illustrated this point effectively. Highlighting the economic benefits of film can strengthen our position in negotiations with decision makers.

Cash and tax rebate systems are part of this discussion, as they are employed by governments to incentivise film and TV productions in their countries. Moldova launched a new cash rebate programme for foreign productions in 2022. How accessible and effective is it today?
We introduced the cash rebate scheme for foreign productions in 2022 [the scheme seeks to establish Moldova as a filming destination by encouraging foreign film and TV productions in the country, offering a cash rebate of up to 30%, including 5% for productions that specifically promote Moldova]. This year, we had the first [foreign] project that accessed [and benefitted from] the programme. It was a German project, directed by a Moldovan filmmaker based in Germany. We need some time to see the effects of the scheme. Once we can present further figures – say, five to ten projects with significant spending [benefitting the local economy] – we can engage in more pragmatic discussions with the Ministry of Finance and communicate with them in their language. As for the accessibility and efficiency of the cash rebate system, we have aimed to make the process straightforward and rapid. We are now considering a [digital process] for cash rebate applications via email. And as for the tax rebate system… Right now, we have a zero-tax rate on company income if you reinvest your profits, so of course, companies prefer to reinvest in their own businesses. So, the system will not work effectively. I really like the tax rebate system in Lithuania, especially because if you don't have funds, it’s an effective way to connect businesses and film. It’s not just about money; it’s also about building long-term relationships that can create partnerships and foster interest in film among business communities. Businesses already have local contacts, production company infrastructure and networks, so this system could serve as a strong incentive to improve development and continue enhancing the local film industry infrastructure. Take [South] Korea as an example: they introduced tax incentives to stimulate investment in film production, and some major companies started investing in the film sector. However, they soon realised that, despite increased production, films were not being distributed well. In response, they began investing in building and expanding cinema chains to establish the necessary infrastructure. This kind of synergy between businesses and the film industry [can be valuable].

Let’s discuss the situation in Moldova. You took on the role of director at the Moldovan National Film Center in 2021. Could you talk about some of the biggest challenges you have encountered so far?
The challenges in leading the Moldovan National Film Center are tied to the state of the film industry. To build an industry is complicated in a country with significant socio-economic challenges. When I took office in 2021, Moldova was facing the crises related to the pandemic, followed a year later by Russia’s war in Ukraine. Film wasn’t a national priority [under these circumstances].

One primary challenge is the limited budget. Building a sustainable film industry requires investment, but state institutions often expect immediate results, which is unrealistic for the film industry. However, step by step, I have managed to draw attention to the sector. People have started to pay attention to the sector, and to understand the need for reforms and increased funding. I have succeeded in incrementally raising the budget three times, although it remains modest.

The annual budgeting system poses challenges, as we cannot rely on consistent funding year to year. We are depending on different factors, and I cannot be sure that I will have the same budget next year. Talent retention is another concern. A lot of talent is leaving the country owing to unfavourable conditions. And it is a challenge to create conditions to retain them in the country or attract them back.

One of my key missions during my tenure has been to reform the cinema law. I began working on it at the start of my tenure, but it has been a difficult process, especially with four different Ministers of Finance coming in during my mandate. Building continuity in negotiations has therefore been a struggle, as each time I begin working with one leadership, a new one comes in, and we have to start from scratch. This is one of the reasons I am organising this forum. It serves as a resource for our local community to build connections with the international industry, but it is also about raising the visibility of our sector and sending a message to society and decision makers about the impact of the film industry.

We have proposed a European model of funding based on levies, which would provide autonomy and financial guarantees [through a predictable stream of funding tied to economic activity]. Given that we do not live in a very politically stable country, this model could be particularly valuable. A recent survey revealed that 51% of Moldovans are willing to contribute a small amount of money to support national films. However, collecting this money requires a functioning mechanism. Initially, we proposed doing this through telecommunications companies. Unfortunately, the balance of power was quite different, and they seemed unwilling to become active partners. We are now exploring alternatives, including cinema and lottery tickets.

When you assumed this role, you also talked about the inception of the cinema fund. Could you share the progress you have achieved in that regard?
The budget has increased. I understood that securing a substantial sum for funding would not be easy, so I began exploring alternative solutions. I focused on co-productions as a way to enter larger productions, gain visibility and learn from other partners. This approach has proven effective. Most co-productions have been with Romania, but there have also been collaborations with Germany and Austria. Due to financial constraints, the focus has primarily been on documentary films, as they require less funding than fiction films. Another priority has been fostering international activity by supporting filmmakers and producers attending events. These efforts have provided opportunities for partnerships, networking and professional growth.

How has the allocation of individual amounts for supporting local productions changed?
These amounts have increased. As a producer myself, I understand how challenging it is to make films. When I began working with the Moldovan National Film Center, the average allocation for a fiction film was around €50,000-€60,000, and for a documentary, it was €25,000-€30,000. We decided to double the investments. For documentaries, we now allocate approximately €50,000. I seek to increase funding incrementally each year. A budget exceeding €50,000 is also acceptable when it comes to co-productions of documentaries. Of course, it depends on the scope of a project. However, the support is still very modest. 

What is the importance of co-productions in Moldova now?
In the past, co-productions happened rather sporadically. Now, the concept of co-productions has become more established here. I understand that co-productions can be challenging, but for us, they are currently a good option. I promoted the revised Council of Europe Convention on Cinematographic Co-production, [noting that it is important that Moldova becomes a member of the Convention facilitating European co-productions]. For smaller nations like Moldova, co-productions provide us with the time to build strong skills and knowledge while developing our industry. As the industry grows, we will become stronger and better [equipped] to produce national projects.

While co-productions are excellent for fostering economic and skill development, we must also prioritise supporting national projects. We operate in a complicated audiovisual context, as we face the influence of Russian propaganda and division. So, we need an alternative. Film offers a way to build social cohesion within our country. And we have some very good examples, including such national films as Carbon [+see also:
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trailer
film profile], Siberia in the Bones and so on. We need to understand the importance of generating local content, which has become a powerful tool in today’s world. In the context of a hybrid war, the media are a significant priority, but decision makers must place a greater focus on film. Unlike media content, which often lasts for just one day, film resonates on an emotional level and serves as a long-term player. It can do more to educate critical thinking. This is especially important in the current context. I think the attitude towards this sector is already shifting. People have a growing desire to see national films. In recent years, we have experienced a sort of boom – audiences are coming to watch national films. We need to leverage this societal trend and deliver more content if there is genuine national interest in local movies.