Cuts in the state budget have reduced the support administered by the National Film Centre of Latvia for film production and development in 2009 to €3,110,000.
Since 2005, state subsidies for film production had increased every year, reaching €4,615,000 in 2008. This year the state financing for the film industry has been reduced by 33% in comparison with 2008.
The National Film Centre (www.nfc.lv) has announced three project competitions to apply for state funding for film projects: fiction, documentaries, and animation. In the documentary film competition, new film projects are eligible to apply. Only projects already in production can receive financing in the areas of fiction and animation films.
Many film studios in Latvia have been working in the advertisement industry to support their film business. However, in the current economic crises, state support for film production has become more crucial. In response, the Latvian film industry is expected to focus on attracting more foreign productions and co-operation with foreign film studios.