Germany’s KfW Bank Boosting Film Funding with New Gap, Development Financing Model
Even though Germany’s economy has bounced back, most commercial banks have pulled out of film financing.
COLOGNE, Germany -- German state-run development bank KfW Bankengruppe is getting into the film business. The financial institution will begin offering credit to filmmakers in the form of bridge loans, development financing, start-up funds and gap financing. The group may also come on board to fully finance productions.
The move comes in response to demands by local producers, who have seen equity and bank credit for film production dry up in the wake of the global economic collapse. Even though Germany's economy has bounced back, most commercial banks have pulled out of film financing and are wary to return.