Canada is strengthening its support for the defense sector by engaging the state-owned Business Development Bank to finance and invest in companies operating in the security sector. This is reported by Bloomberg, according to UNN.
Details
According to the new state budget, the bank will provide loans and venture capital to defense industry enterprises. The initiative aims to expand the country's production capacity and support technology companies.
As part of Prime Minister Mark Carney's five-year plan, approximately 82 billion Canadian dollars (about 58 billion US dollars) are allocated for the modernization of the armed forces. The funds will go to increasing military salaries, developing cybersecurity, replenishing ammunition, drones, and armored vehicles.
As part of the rearmament plan, the state budget allocates 6.6 billion Canadian dollars for a strategy to develop the defense industry, "so that most of our military capabilities are purchased through Canadian supply chains."
This should also help offset losses for steel and aluminum producers caused by US tariffs.
The Business Development Bank will receive $1 billion for a lending and investment program for defense sector enterprises and another $1 billion to support dual-use technologies.
In addition, 6.2 billion Canadian dollars will be directed to strengthening international defense partnerships, including expanding military assistance to Ukraine.
Recall
Canada filed a lawsuit to confiscate a Russian An-124 aircraft, which has been at Toronto airport since February 2022. If the court process is successfully completed, the aircraft will be transferred to Ukraine.
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