European Commission and EIB make available new financing instrument for audio-visual sector

Brussels, 19/12/2000 (Agence Europe) - The European Commission and the European Investment bank (EIB) presented, on Tuesday in Brussels, new financial and banking instruments aimed at supporting European audio-visual works. Intervening as an addition to the Community aid programme for the audio-visual industry Media Plus (programme with a budget of EUR 400 million over five years, 2001-2005), this financial package, named "i2i audio-visual", will have as aim to accelerate the adapting of the sector to digital technologies and to favour the development of European audio-visual content. For an initial duration of three years, it should enable to federate significant financial means, hopes the Commission "estimates, based on the first operation currently under evaluation, suggest that the initial volume of EIB Group funding should be in excess of half a billion euro", indicated its spokesperson.

This initiative stems from the European Summit in Lisbon in March, where the Heads of State and Government of the European Union (EU) set themselves as aim to facilitate the transition towards an economy and society based on information and knowledge. "In May, I contacted Philippe Maystadt (President of the EIB) to discuss ways in which to get European cinema out of the rot (…) and to enable the sector of European content to hold its place on the international scene", explained the European Commissioner for Culture Viviane Reding, when discerning two main structural barriers to be overcome: the low circulation of European works and the lack of capital available. "The new financial means mobilised by the EIB, will make the Europe of audio-visual enter into a vicious circle", she felt: "this signal can contribute towards widening and diversifying these undertakings from the banking sector in favour of audio-visual".

The EIB has planned to follow four lines for action:

• The provision of credit lines (or "global loans") to the banking sector specialised in audio-visual for the financing of small companies engaged in audio-visual creation, in audio-visual technologies or carrying out subcontracted works in this sector.
• The medium- and long-term financing (direct loans) of large private or public television production or distribution groups, for their investments in infrastructure (studios, digital installations, broadcasting stations, etc.) or for creation (production of "bouquets" of films, distribution of works or catalogues).
• The participation of venture capital funds specialised in audio-visual, through the participation of the European Investment Fund (EIF), subsidiary of the EIB specialised in venture capital. A first transaction has been signed this Tuesday between the EIF and the specialised Finnish fund "Venture Capital for Creative Industries".
• Joint actions with the European Commission in favour of the cultural creation or the development of film or television industry aiming to ensure better complementarity between the banking resources of the EIB and the Community subsidies of the Media Plus programme: organisation of session in the training in the financing of audio-visual firms and works, joint support actions between European distributors to set up distribution campaigns, the development of on line services and themes based digital channels, make the most of film archives, an encourage dialogue between audio-visual financiers.