STRUCTURING FINANCIAL TOOLBOX FOR AUDIOVISUAL SECTOR …

STRUCTURING FINANCIAL TOOLBOX FOR AUDIOVISUAL SECTOR IN GREECE PERIOD 2018–2022

PRESENTATION OF CASH REBATE FRAMEWORK AND THE FINANCIAL TOOLBOX SCHEME FOR THE PERIOD 2018 –

2022, BY THE MINISTRY OF DIGITAL POLICY, TELECOMMUNICATIONS & MEDIA – HELLENIC REPUBLIC,

Philemon Moussouris, Special Advisor Deputy MinisterNovember 2018

STRUCTURING FINANCIAL TOOLBOX FOR AUDIOVISUAL SECTOR IN GREECE PERIOD 2018–2022

MINISTRY OF DIGITAL POLICY, TELECOMMUNICATIONS & MEDIA, HELLENIC REPUBLIC

https://el-gr.facebook.com/MinDigitalGr/http://mindigital.gr/https://media.gov.gr/

https://el-gr.facebook.com/MinDigitalGr/

http://mindigital.gr/

https://media.gov.gr/

STRUCTURING FINANCIAL TOOLBOX OF CASH REBATE 2018–2022

INCENTIVES Laws No.4487/2017, No.4563/2018 implements a 35% cash rebate

to cover the eligible costs of national and international audio-visual productions

and/or post-production, without cap

Feature films, documentaries, television series, animations, digital games

A minimum of €100.000 for film/documentary, TV Series: €100.000+€30.000

per episode, digital games:€ 60.000

The incentive is administered by the National Centre of Audiovisual Media and

Communication S.A. (EKOME S.A., www.ekome.media),

a state-owned legal entity governed by private law, in Greece.


35% CASH REBATEGENERAL GUIDELINES


The recent implementation of the cash rebate system

(L.4487/2017, L.4563/2018, Joint Ministerial Decision

1138/28-3-18) for the production of audiovisual works in

Greece is a decisive step towards attracting film,

television, documentary, animation producers and digital

games developing companies to invest in the Greek

creative sector.


The rebate amounts to 35% without cap on the eligible expenses incurred in Greece

for all beneficiaries. Producers will have access to state aid once they pass the cultural

test and spend at least € 100.000 in the case of feature films or documentaries and €

60.000 for digital games, and for TV series starting at € 30.000 per episode with a

minimum of all eligible expenses at € 100.000. The cash rebate will be available to

producers no later than six months after the completion of production, provided that

all prerequisites of L.4487/2017, L.4563/2018 have been met.

PHOTO: MESSINIAN BAY - KALAMATA AT SUNSET, AERIAL VIEW

FINANCIAL TOOLBOX OF CASH REBATE 2018–2022

The cash rebate for the audiovisual industry in Greece is

administered by the National Centre of Audiovisual Media &

Communication (EKOME S.A., www.ekome.media), a legal

entity governed by private law and controlled by the Greek

state.

Financing of the rebate is guaranteed through the Greek Public

Investment Program and amounts to a total of €75m available

for 2018, plus € 375m over the period of 2019-2022 (Programme

of Public Investments – State Budget).


What is eligible for cash rebate?


The cash rebate for the production of audiovisual workssupports feature films, documentaries, TV drama series,animated films and digital games that choose Greece as locationin either principal photography and production developmentand/or post-production stage.

The rebate does not apply to commercials, reality TV shows, TVgames, sports or current affairs shows.


Applications may be made for international and domestic productions and/or co-productions to obtain a 35% cash rebate on the sum of eligible expenses incurred in Greek territory.

PHOTO: STADIUM FROM ANCIENT MESSENE, 4th Century B.C, Location: MESSINIA, PELOPONNESE


Who is eligible for the cash rebate?


Eligible to apply for cash rebate in Greece are undertakings which areestablished or have a branch in the Greek territory and operate in orderto produce audiovisual works

Foreign producers of audiovisual works who are contracted with anundertaking established or having a branch in Greek territory andoperating for the purpose of producing audiovisual works andundertakings for the production of audiovisual works in the context ofcross-border production.


Important Note: Applications should be submitted only by the Greek partner company. However, beneficiary and applicant may not necessarily coincide. Namely, a beneficiary may be the Greek producer, co-producer or production service provider, or their foreign partner.

Photo: Ancient Theatre of Epidaurus, 4th Century B.C.


When is the cash rebate payable?


The cash rebate is paid to producers no later than six months after

the completion of the production and/or post-production in

Greece, provided that all prerequisites of L.4487/2017,

L.4563/2018 have been met.


For cash rebate inquiries, please contact:EKOME S.A. – National Centre of Audiovisual Media and Communicationwww.ekome.media

T +30 214 4022 500T +30 214 4022 503E [email protected]@ekome.media

Alexandrou Pantou & Fragkoudi 1117671, Kallithea

http://www.ekome.media/

mailto:[email protected]



EVALUATION PROCEDURE CASH REBATE – 3 STAGES


EVALUATION PROCEDURE-APPLICATION

- SUBMMISION OF THE QUALIFICATION APPLICATION OF THE INVESTMENT PLAN ENTITY

- ASSESSMENT OF THE QUALIFICATION APPLICATION (LEGALITY EXAMINATION, CHECK SUPPORTING DOCUMENTATION)

- INVESTMENT PLANS THAT DOESN’T MEET THE CRITERIA ARE REJECTED

- INVESTMENT PLANS THAT MEET THE LEGAL REQUIREMENTS ARE SUBJECT TO THE PRESENET AID SCHEME IN ACCORDANCE OF LAWS 4487/2017, 4563/2018

- A SUMMARY OF THE APPROVAL DECISION CASH REBATE OF THE MINISTER OF DIGITAL POLICY, TELECOMMUNICATIONS & MEDIA IS PUBLISHED IN THE GOVERNMENT OFFICIAL GAZETTE (MAX PERIOD 45 DAYS AFTER THE SUBMISSION OF THE APPLICATION)

PRODUCTION PERIOD OF AUDIOVISUAL PROJECT

- PRODUCTION WORK OF AUDIOVISUAL

- POSTPRODUCTION WORKS

- THE DEADLINE OF THE FINALIZATION OF THE INVESTMENT PLAN IS 3 YEARS AFTER THE EFFECTIVE DATE OF THE PUBLISHING IN THE GOVERNMENT OFFICIAL GAZETTE OF THE APPROVAL DECISION OF CASH REBATE OF THE MINISTER

- EFFECTIVE PERIOD REGARDING MODIFICATIONS OF THE QUALIFICATION DECISION (AMENDMENTS TO THE INVESTMENT PLAN)

- WHEN THE INVESTMENT PLAN HAS BEEN CARRIED OUT A MIN OF 60% AND IS OVER OF €100 ΤΗ, ΜΑΥ ΤΗE APPLICANT ASKS FOR FINAL CHECK AND VERIFICATION OF THE AUDIT COMMITTEE

FINAL CHECK-CERTIFICATION-VERIFICATION PLAN’S COMPLETION

- THE INVESTMENT PALN ENTITY AFTER THE COMPLETION OF THE INVESTMENT PLAN AND NO MORE THAN 60 DAYS OF COMLPETION, SUBMITS IN THE INFORMATION SYSTEM (PSKE) OF EKOME, ALL THE NECESSARY DOCUMENTS FOR EVALUATION

- THE EVALUATION PROCESS IS FINALISED TILL 60 DAYS OF THE TIME OF SUBMISSION

- IF THE REPORT OF THE AUDIT BODY IS COMPLETE, THE AUDIT BODY THEN SUGGESTS THE ISSUANCE OF AN APPROVAL DECISION BY THE MINISTER.

- A CERTIFIED COPY OF THE INVESTMENT’S PLAN COMPETION IS SEND TO THE INVESTMENT PLAN ENTITY. THE DEDLINE THEN OF PAYING THE SUBSIDY IS 60 DAYS.


EVALUATION PROCEDURE-APPLICATION

- SUBMMISION OF THE QUALIFICATION APPLICATION OF THE INVESTMENT PLAN ENTITY

- ASSESSMENT OF THE QUALIFICATION APPLICATION (LEGALITY EXAMINATION, CHECK SUPPORTING DOCUMENTATION)

- INVESTMENT PLANS THAT DOESN’T MEET THE CRITERIA ARE REJECTED

- INVESTMENT PLANS THAT MEET THE LEGAL REQUIREMENTS ARE SUBJECT TO THE PRESENET AID SCHEME IN ACCORDANCE OF LAW

4487/2017, 4563/2018, JMD 1138/28-3-18.

- A SUMMARY OF THE APPROVAL DECISION CASH REBATE OF THE MINISTER OF DIGITAL POLICY, TELECOMMUNICATIONS & MEDIA IS

PUBLISHED IN THE GOVERNMENT OFFICIAL GAZETTE (MAX PERIOD 45 DAYS AFTER THE SUBMISSION OF THE APPLICATION)


PRODUCTION PERIOD OF AUDIOVISUAL PROJECT

- PRODUCTION WORK OF AUDIOVISUAL

- POSTPRODUCTION WORKS

- THE DEADLINE OF THE FINALIZATION OF THE INVESTMENT PLAN IS 3 YEARS AFTER THE EFFECTIVE DATE OF THE PUBLISHING IN THE

GOVERNMENT OFFICIAL GAZETTE OF THE APPROVAL DECISION OF CASH REBATE OF THE MINISTER

- EFFECTIVE PERIOD REGARDING MODIFICATIONS OF THE QUALIFICATION DECISION (AMENDMENTS TO THE INVESTMENT PLAN)

- WHEN THE INVESTMENT PLAN HAS BEEN CARRIED OUT A MIN OF 60% AND IS OVER, ΜΑΥ ΤΗE APPLICANT ASKS FOR FINAL CHECK AND

VERIFICATION OF THE AUDIT COMMITTEE


FINAL CHECK-CERTIFICATION-VERIFICATION PLAN’S COMPLETION

- THE INVESTMENT PALN ENTITY AFTER THE COMPLETION OF THE INVESTMENT PLAN AND NO MORE THAN 60 DAYS OF

COMLPETION, SUBMITS IN THE INFORMATION SYSTEM (PSKE) OF EKOME, ALL THE NECESSARY DOCUMENTS FOR EVALUATION

- THE EVALUATION PROCESS IS FINALISED TILL 60 DAYS OF THE TIME OF SUBMISSION

- IF THE REPORT OF THE AUDIT BODY IS COMPLETE, THE AUDIT BODY THEN SUGGESTS THE ISSUANCE OF AN APPROVAL DECISION BY

THE MINISTER.

- A CERTIFIED COPY OF THE INVESTMENT’S PLAN COMPETION IS SEND TO THE INVESTMENT PLAN ENTITY. THE DEDLINE THEN OF

PAYING THE SUBSIDY IS 60 DAYS.


STRUCTURING BANKING SOLUTIONS FOR AUDIOVISUAL SECTOR AND DIGITAL GAME SECTOR IN GREECE


TYPES OF FINANCIAL AIDThe cash rebate scheme can be combined with other aid schemesprovided that total state financing shall not exceed:

- 50% for domestic productions or co-productions

- 60%, in case of cross-border productions with EU members

- 70%, in case of “difficult” audiovisual works as defined in Law No.4487/2014

* EU funds (EURIMAGES or MEDIA) are not included in the above maximum rules


FRAMEWORK AGREEMENT1. MINISTRY OF DIGITAL

POLICY – ΕΚΟΜΕ SA2. ETEAN SA – CENTRAL

PROVIDER -COORDINATOR

3. TANEO SA - VCs4. SYSTEMIC

COMMERCIAL BANKS5. DEV.LAW 4399/2016

COMMERCIAL SYSTEMIC BANKS

Credit lines of Working Capital / Medium-Term

Loan

• CREDIT LINE 1: Medium Term loans € 25.000 - €1.500.000

• CREDIT LINE 2: Working Capital € 10.000 - € 500.000

ETEAN SA –BANKS:

CO-FINANCING PROGRAMME

TEPIX II FOR SMEs “BUSINESS FUNDING”

BUDGET € 915

MILLIONS (starting Q4 2018)

• € 25 millions -GUARANTEE FACILITYFRAMEWORK

ETEAN S.A.

SPECIAL PROGRAMME

CREATIVE INDUSTRY I (starting Q4

2018)

AUDIOVISUAL PRODUCERS - CASH

REBATECREDIT LINES

WORKING CAPITAL-BRIDGE

FINANCE

MEDIUM-TERM LOANS

MINISTRY APPROVALCASH

REBATE/COLLATERAL PLEDGE 100%

TANEO SA

BUDGET € 50 ΜIL

VC1

VC2

VC3

VC4

VC5

VC6NEW

DEVELOPMENT LAW 4399/2016 SUBSIDY (UP TO

10%-55% OF BUSINESS PLAN, THIRD CALL END

11/2018 FOR SMEs (INCLUDED A/V

SECTOR)


FRAMEWORK AGREEMENT1. MINISTRY OF DIGITAL POLICY,

TELECOMMUNICATIONS & MEDIA -ΕΚΟΜΕ SA

2. ETEAN SA – CENTRAL PROVIDER -COORDINATOR

3. TANEO SA - VCs4. SYSTEMIC COMMERCIAL PRIVATE

BANKS5. DEVELOPMENT LAW 4399/2016


• CREDIT LINE 1: Medium Term loans € 25.000 - € 1.500.000

• CREDIT LINE 2: Working Capital €10.000 - € 500.000

ETEAN SA – COMMERCIAL BANKS:

CO-FINANCING PROGRAMME FOR SMEs and STARTUPS “BUSINESS

FUNDING” BUDGET € 915MILLIONS – starting Q4 2018, to be

announced)

ETEAN SA (HELLENIC FUND FOR ENTREPRENEURSHIP & DEVELOPMENT SA) is a public financial

institution which in collaboration with the big 4 Systemic Banks will launch (end of 2018) the

programme “BUSINESS FUNDING- TEPIX II” for SMEs & Startups for a lot of sectors which are

included the A/V sector and Gaming for the first time of history of ETEAN SA:

Credit line 1 will cover development needs for assets, equipment etc, and

Credit line 2 will cover short term financial needs of SMEs for working capital – general

expenses, payroll, stocks etc).


SYSTEMIC BANKS

Credit lines of Working Capital /

Medium-Term Loan

CREDIT LINES

WORKING CAPITAL-BRIDGE

FINANCE

MEDIUM-TERM LOANS

MINISTRY APPROVALCASH

REBATE/COLLATERAL PLEDGE 100%

AUDIOVISUAL PRODUCERS - CASH

REBATE

This financial product will bridge the gap (bridge finance)

between the final collection of the incentive and the first

Ministry approval of the cash rebate. Credit lines of Working

Capital & Medium term loans can be realized, specialized for

the cash rebate producers.

The Ministry approval will be set as a pledge – collateral for

the transaction (working capital – bridge finance lending

scheme)


• € 25 millions -GUARANTEE FACILITYFRAMEWORK

ETEAN S.A.

PROGRAMME CREATIVE

INDUSTRY I

(STARTING Q4/2018)

So ETEAN SA facilitates the structuring of a credit line –guarantee facility of € 25Μ from state aid facility in order to flow them (as central provider) to cover up as a collateral pledge, credit line-facilities of SMEs and Startups of the Audiovisual Sector and Gaming Sector through the Commercial Private Banks.


New Development

Law 4399/2016

TANEO SA – VCs


TANEO SA BUDG € 50 ΜIL

VC1

VC2

VC3

VC4

VC5

VC6

INVITATION FOR EXPRESSION OF INTEREST – PROGRAMME CREATIVE INDUSTRY II- 10/31/2018 -http://mindigital.gr/index.php/deltia-typou-anakoinoseis/3136-prosklisi-ekdilosis-endiaferontos-dimiourgia-ependytikoy-tameiou-gia-optikoakoustikes-paragogesThe New Economy Development Fund S.A. (“TANEO”) on behalf of the Greek Ministry of Digital Policy,Telecommunications and Media is about to launch a new Fund of Funds investment vehicle starting with €50mpublic investment. The Fund will participate in Venture Capital schemes with investment focus on Greek Small andMedium sized enterprises active in the fields of film, content and video games creation in Greece.TANEO and the Ministry of Digital Policy, Telecommunications and Media hereby invite the members of the globalinvestment community for expression of interest.This invitation is addressed to all investors and investment managers interested in establishing Greek VentureCapital Companies or Venture Capital Mutual Funds or any other venture capital form operating in accordance tothe laws of a European Union member state, with the purpose of co-investing along with TANEO in Greek Small andMedium sized enterprises.


TANEO SA BUDG € 50 ΜIL

VC1

VC2

VC3

VC4

VC5

VC6

The investment vehicles should be managed by independent private legal entities and shall invest, via equityparticipations and/or quasi equity financial instruments, in Startups, Small and Medium sized enterprises, thebusiness scope of which is to produce, co-produce and disseminate audiovisual content. The appropriateness of themanagers, the reliability of the business proposals and their attribution to the Greek Economy development willconstitute the critical factors for the selection of intermediaries.Greece has recently taken decisive steps in attracting international film, television, documentary, animation andvideo gaming producers by imposing among others new cash rebate scheme of 35%. The rebate is flexible, it has nocap, it is secured funded by the Greek Public Investment Programme that amounts to €450m for the period up to2022. Applications are submitted all year long to an electronic system guaranteeing smooth, timely and transparentprocessing. The rebate is payable no later than six months after the completion of the shooting process in Greece.TANEO will accept meeting requests for the provision of further information until 10/12/2018.For more information:Τel. +30210-3387113. E-mail: [email protected]



NEW DEVELOPMENT LAW 4399/2016 SUBSIDY (UP TO 10%-55% OF BUSINESS

PLAN, THIRD CALL FOR SMEs (to be announced Q4/2018 – “GENERAL

ENTREPRENEURSHIP” PROGRAMME) & under establishment or merging companies

(A/V SECTOR INCLUDED)

Types of aid: Grant, Leasing Subsidy (machinery-equipment), Tax exception, New employment cost subsidy, Stabilization

of income tax rate, financing of business risk via equity fund

Content of investment projects: creation of a new unit, the expansion of the existing plant capacity, production

diversification, acquisition of all assets owned by a business establishment which has been closed

Reinforcement percentages: aid rates are related to the regional aid map of Greece and also by to the size of the

investment entity


THANK YOU FOR YOUR ATTENTION

STRUCTURING FINANCIAL TOOLBOX FOR AUDIOVISUAL SECTOR …

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