Greek Officials Seek to Shore Up Confidence in Country’s 40% Cash Rebate After Program Put on Extended Pause

As a seasoned film industry professional with years of experience under my belt, I must say that navigating through the ever-changing landscape of international film production can be quite a rollercoaster ride. The recent developments in Greece are no exception.

This week at the Thessaloniki Film Festival, Greek officials aimed to allay concerns among both local and international film producers by confirming that their 40% cash rebate remains active, following the news last month about Greece postponing its intentions to restart its incentive program.

The decision occurred following Greece temporarily halting its cash-back initiative in May to pay off over €100 million ($107 million) worth of outstanding debts. Greek authorities now affirm that the program will be reactivated in January; however, they deem a postponement necessary for the government to balance its finances, with Leonidas Christopoulos, CEO of Creative Greece (the state audiovisual body), supporting this delay.

Christopoulos stated to EbMaster that it wouldn’t be believable, particularly on an international scale, if there was a massive backlog and the platform was reopened.

Ever since its introduction in 2019, Greece’s cash-back incentive program has been instrumental in attracting major film productions. For instance, it played host to Rian Johnson’s hit Netflix movie “Glass Onion: A Knives Out Mystery”, Ruben Östlund’s Palme d’Or winning film “Triangle of Sadness”, and Maggie Gyllenhaal’s “The Lost Daughter”.

Based on Christopoulos’ findings, the program has settled 211 out of the 319 applications that have been accepted since its launch, using a total of €130 million ($139 million) in public funds. This equates to approximately half of the funds being distributed in the year 2023. The government also set aside an extra €55 million ($59 million) this year to support previously approved applications. However, these payments are yet to be made as each project’s audit process is still ongoing.

The government is making efforts to resolve a backlog of rebate scheme applications from 2023, aiming to ensure that most projects currently on hold due to approval delays will receive decisions by the end of this year. Christopoulos emphasized that approximately 70-80% of these applicants will receive their decisions within this timeframe.

While the rebate is temporarily paused, Creative Greece is collaborating with the finance ministry to guarantee that local expenses for foreign film productions will remain eligible for the cash-back program. This applies to projects such as Anonymous Content’s Biblical horror film “The Carpenter’s Son,” starring Nicolas Cage, and Amazon’s Bible-inspired series “House of David,” which are set to be filmed in Greece this year.

As a passionate movie enthusiast, I, hailing from London, have been associated with Head Gear Films – a film financing house that’s no stranger to backing projects filmed in Greece. From Molly Manning Walker’s buzzworthy “How to Have Sex” in Un Certain Regard, to Justin Anderson’s Rotterdam selection “Swimming Home”, our work here has been substantial. However, I must express my concerns about the potential risks and uncertainties that are looming over the Greek rebate program, which if not addressed, could compromise its credibility in the film industry.

Said emphasized that transparency, particularly in terms of a clear timeline, is crucial for our considerations. We prioritize this factor when deciding which jurisdiction to extend loans from and determining rates because it significantly impacts the cost of the loan.

He emphasized that the refund is increasingly crucial in every financing scheme we’ve observed. When situations become unpredictable, volatility arises as a natural consequence due to increased costs and heightened risk.” (He also mentioned that his company remains content with its interactions with the Greek rebate program.)

Greek Officials Seek to Shore Up Confidence in Country’s 40% Cash Rebate After Program Put on Extended Pause

Simultaneously, a pile-up of projects vying for the rebate had left producers in a delicate situation, well before the system was paused. Producer Amanda Livanou (“Buzzheart”) stated, “We’ve been collaborating with lenders…who have graciously demonstrated trust in Greek producers by lending based on [letters of intent], not binding decisions.” It is clear to everyone that this method is not sustainable.

The current state of affairs intensifies the mounting irritation among Greek filmmakers following a recent restructuring in their industry’s administration. This year, at the Cannes Film Festival, the Greek government introduced a new administrative body called Creative Greece. This entity combines the Greek Film Center, which used to handle domestic production, and EKOME, responsible for managing the country’s 40% cash rebate and its associated tax relief program. The amalgamation aims to simplify the expanding Greek film industry by consolidating its diverse branches under a single flag.

In Thessaloniki, Livanou – who is also a vice-president at the Audiovisual Producers’ Association of Greece (SAPOE) – expressed support for the establishment of the new entity. He emphasized that the industry has long advocated for a simplified, unified, and enduring audiovisual policy.

During the yearly industry gathering at the festival, several producers voiced their disappointment over what they perceive as the government’s failure to fulfill its pledges. Fenia Cossovitsa, president of SAPOE (“She Loved Blossoms More”), questioned whether the Creative Greece initiative, though promising on paper, will actually be effectively carried out in reality.

The strategy involves increasing the budget for the organization’s special grant program by almost double, with Christopoulos revealing to EbMaster his intention to allocate approximately €7 million ($7.5 million) towards the creation and distribution of Greek audiovisual content, which is a significant advantage for an industry that has long been struggling financially in Greece.

This week, Greek filmmakers are celebrating 15 years since Greece experienced a significant breakthrough in 2009. That’s when Yorgos Lanthimos’ remarkable debut, “Dogtooth,” won the Prix Un Certain Regard at Cannes and was nominated for an Oscar, marking the beginning of what Konstantinos Kontovrakis, a seasoned producer known for “How to Have Sex,” calls a period of “unparalleled success” in Greek cinema.

He expressed his feelings of disappointment, but reminded everyone that our gathering marks fifteen years of progress. Our dissatisfaction isn’t aimless; we aim to ensure another fifteen years of continued advancement.

Greek Officials Seek to Shore Up Confidence in Country’s 40% Cash Rebate After Program Put on Extended Pause

Regardless of the present uncertainties and intensifying competition from neighboring countries such as Malta and Cyprus, Said, the head of Head Gear, maintains a highly optimistic outlook towards Greece as a whole. Notably, Head Gear is also supporting “Sacrifice,” Romain Gavras’ (“Athena”) first English-language film, currently being filmed in Greece and Bulgaria.

He shared that he’s enjoying the producers he’s working with immensely and cherishing the unique experiences he’s having. He also mentioned the rich variety of landscapes here, making it an ideal place for filming. Reflecting on their time in Greece, they wish to continue this journey and delve even further into it.

Simultaneously, it’s crucial for us to observe the developments unfolding, particularly over the coming months. This way, we can grasp the specifics of the legislation, ensure transparency in the process, and ultimately have an open discussion with potential producers about what they should anticipate and how we’ll organize our investments.

The Thessaloniki Film Festival runs Oct. 31 – Nov. 10.

2024-11-09 18:47

Greek Officials Seek to Shore Up Confidence in Country’s 40% Cash Rebate After Program Put on Extended Pause

Read More

Minority Mindset