BRIAN DUNN / MONTREAL
The Canadian government is allocating an additional C$1.2 billion ($860 million) in loans to buyers of Canadian aircraft in an effort to help Bombardier secure more foreign sales. The money will be repayable on commercial terms and available to finance individual transactions.
The funds are on top of billions in loans and loan guarantees made available to Bombardier through government agency Export Development Canada. EDC had C$7.6 billion in loan exposures to the aerospace sector as of 31 May, 85% of which went to Bombardier clients.
Ottawa is confident the new money will not be considered an unfair subsidy by the World Trade Organisation because it will require repayment on commercial terms and will not be used to take business away from Bombardier rival Embraer of Brazil. Canadian trade minister Pierre Pettigrew says the loan facility will help support sales of regional jets, but no specific transactions have been identified.
Source: Flight International
