BRAZIL

On December 23, the National Film Agency (ANCINE in Portugues) announced the approval of a contract with the National Development Bank (BNDES in Portuguese) to guarantee the execution of the Audiovisual Sector Fund (FSA in Portuguese) over the next 5 years, with an investment of up to R $5 billion (approximately US$ 876 million) in investments in the audiovisual activity. 

R $100 million (approximately US$17.5 million) will be allocated for the completion of the production of feature films in an advanced stage of financing and execution, in order to contribute to the expansion of the participation of Brazilian films in the domestic and foreign markets. 

It is expected that at least 30% of the resources will be directed to projects from producers in the North, Northeast and Midwest regions and a minimum of 10% to projects from companies based in the South and in the states of Minas Gerais and Espírito Santo.

Legal framework

It should be noted that the Audiovisual Sector Fund (FSA) is a fund aimed at the articulated development of the entire production chain of the audiovisual activity in Brazil. Created by Law 11.437, in 2006, and regulated by Decree 6.299, in 2007, it is a specific category of the National Culture Fund (FNC in Portuguese). 

The FSA includes activities associated with the different segments of the production chain of the sector of distribution, commercialization, exhibition and service infrastructure, through the use of different financial instruments, such as investments, financing, support operations and equalization of financial burdens to encourage the national audiovisual sector. 

In addition, a total amount of R$651.2 million (approximately US$114 million) has been approved so far, aiming at stimulating the resumption of economic activity in the post-pandemic context.