ICAA and ICO join forces to boost financing of audiovisual works
The huge difficulties encountered by producers when it comes to clinching the financing needed to get their projects off the ground, recently exacerbated by factors such as the reduction or even disappearance of some exhibition windows and harder access to bank loans, has led the ICAA (Institute of Film and Audiovisual Arts) and ICO (Official Credit Institute) to sign a framework agreement whose aim is to finance new audiovisual works and boost the sector.
According to the agreement, the ICO will set up a funding line to foster the production of feature-length and short films for the big screen, TV dramas, documentaries and animated series. Therefore, audiovisual producers will be able to obtain loans directly from the institute, without needing the intervention of a private bank. The said loans will be guaranteed by the sale of rights to television companies that invest in the early production of audiovisual products.
The maximum amount of the loans cannot exceed the rights acquisition cost.
This agreement will be valid until December 31, 2014 and funding applications can be made until October 31 of that year.
In charge of drawing up the agreement, the ICAA has described it as “very important, as it helps to stimulate the audiovisual sector, which is beset by difficulties when it comes to obtaining loans”.
(Translated from Spanish)
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