The MEDIA Production Guarantee Fund
The European Commission has published a call for expressions of interest - 2010/S 1-000123 - on 2nd January 2010 in view of setting up a loan guarantee mechanism in the framework of the MEDIA 2007 Programme. This MEDIA Production Guarantee Fund will be aimed at supporting and facilitating the access of European audiovisual companies to bank credits.
The Fund will receive an annual contribution which will be used to guarantee bank credits granted to European production companies. The setting up and management of this fund will be delegated to a European financial organisation under indirect centralised management. The call is aimed at selecting the organisation that will be entrusted with the mission to implement the fund on behalf of the European Commission.
The Fund that should be launched in the course of the second quarter 2010 will benefit from a total contribution of € 8 million over a 4-year period. It would share the financial risk related to the loans granted by banks to European independent audiovisual producers, by guaranteeing to cover a certain percentage of the loss in case of failure by the producer to reimburse the loan, thus encouraging local banks to grant credits to film producers.
Only national or international public-sector bodies or bodies governed by private law with a public-service mission providing adequate financial guarantees are eligible to apply, as required by the Financial Regulation applicable to the general budget of the European Union. Candidates also need to be established in one of the territories covered by the MEDIA Programme.
Additionally, they are required to demonstrate the technical capacity to carry out these tasks, which limits eligibility to financial institutions with appropriate registration according to the rules applicable in their home country.
Other financial operators such as private banks, Investment funds, Venture capital funds can submit proposals in consortium with a European financial institution acting as a lead partner and complying with the criteria related to public service mission.
Proposals can be submitted to the European Commission until 15th April 2010.
Ms. Aviva Silver