Spain's government has approved a €20 million ($22 million) funding injection to aid cultural industries such as the games sector.
CREA SGR, a Spanish non-profit financial entity, will receive the money. Local trade body Spanish Video Game Association (AEVI) announced on its website that it had signed an agreement with CREA.
As such, AEVI can inject cash into developers that have suffered from issues such as delayed payments, the cancellation of game events and conventions, and postponed agreements with publishers.
Furthermore, the Spanish firm has projected a 30 per cent loss in productivity due to the ongoing coronavirus pandemic. However, AEVI has proposed a tax deduction on the production of games to Spain's government.
"This initiative is going to be key for the whole of the video game sector in Spain, mostly represented around AEVI, and it comes at a critical time in which it will help to alleviate the most pressing liquidity needs of the companies in our industry in the upcoming months," said AEVI managing director José María Moreno.
The support from the Spanish government is not the first to agree to put cash in the games industry. Recently, Italy had a new $4.4 million funding scheme approved for games developers.