BNDES and ANCINE release support program
On June 23, the BNDES and the a Brazilian Cinema Agency (ANCINE), in partnership with the Ministry of Culture and the Ministry of Finance, released the Cinema Close to You Program, which will support expansion projects for the Brazilian movie theater sector.
With R$ 100 million in resources already contracted from the Audiovisual Sectorial Fund (FSA), ‘Cinema Close to You’ will operate in association with the BNDES Program for the Development of the Cultural Economy (BNDES Procult). Along four years, investments of R$ 500 million are projected (R$ 300 million from the FSA, and R$ 200 million from the BNDES Procult), for the construction of 600 movie theaters. The Bank will be the financing agent of the operations, and responsible for classifying, analyzing and approving proposals.
There are two possible modalities: financing and investment. The first is characterized by reimbursable loans. The second foresees the return of resources based on a percentage of the results reached by the project, with no participation in the theater’s capital.
In all operations, resources will be taken from the BNDES Procult, which offers special conditions for financing the Cinema Close to You Program. With this, the minimum value for financial collaboration, which is R$ 1 million, may be formed by the sum of all instruments foreseen in the Program (FSA-Investment, FSA-Financing and BNDES Procult). The total term, including the grace period, was increased from 8 to 10 years.
The main aims of the initiative are: to strengthen companies and the movie theater segment, offering support for the expansion of the movie theater sector and its technological modernization; to facilitate access of the population to audiovisual works, by opening movie theaters in medium-sized cities and low-income neighborhoods in large cities; to diversify the movie theater patronage, with special attention to the new class C consumers; and to decentralize the sector, seeking to boost the development of new regional centers of movie patrons.
Entry filed under: BRAZILIAN CINEMA, EXHIBITIONS, INDUSTRY GRANTS - BECAS Y AYUDAS, INDUSTRY NEWS, LATIN AMERICAN FILM, PRODUCTORS. Tags: ANCINE, Audiovisual Sectorial Fund (FSA), BNDES, BRAZILIAN CINEMA, Cinema Close to You Program, Latam film.