24/11/2005

Good news for the Soficas (finance companies for the film and audiovisual industry) for whom the total envelope will rise to 10 million euros in 2006, rising from 46 to 56 million. Decided yesterday by the Prime Minister le Premier on the advice of the Minister of Culture, Renaud Donnedieu de Vabres, this rise in the amount that can be raised is a first since the creation of the Soficas in 1985. It is a part of a modernisation of this mechanism which allows tax deductions in compensation for investments in the sector, notably by private individuals. The Minister for Culture and the National Film Centre (CNC) has put together a charter for the Sofica, reinforcing their orientation in favour of independent film and audiovisual production.

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However, this rise does not resolve the funding problem threatening the Soficas in 2007 with a ceiling of 8000 euros of tax relief (read news) which risks turning investors to other systems beyond the arena of film and audiovisual production that give better return. In 2004, 55 features were authorized (53 films initiated in France and 11 first features) used the Soficas finance to cover 6,8% of their budgets.

(Translated from French)