Saxony-Anhalt to the rescue
Finance plan throws a rope to local producersMore Berlinale coverage
BERLIN -- The eastern German state of Saxony-Anhalt has unveiled details of a new financing plan aimed at providing producers and distributors with capital to acquire film and book rights.
The program, titled IMPULS Medien, will see Saxony-Anhalt's state investment bank provide loans totaling 50 million euros ($65 million) annually to acquire immaterial assets such as film rights.
It's hoped that the plan, which targets local companies and investors, will boost the media industry in the poor German state, located just west of Berlin/Brandenburg.
The new plan couldn't come at a better time for German independent distributors. Most German distributors use bank loans to finance acquisitions but, thanks to the credit crunch, the banks have stopped lending money.
The loans from the Saxony-Anhalt state bank are guaranteed by the state government, ensuring a reliable flow of credit.
Interested companies can apply for loans of up to 3 million euros ($3.9 million) each with a maximum duration of 15 years. The loans bear an interest rate of 9.45%.