NB: This article has been updated, a fuller version is accessible at 16:43
GORKI, May 27 (RIA Novosti) – The Russian government will provide 265 billion rubles ($8.5 billion) in state guarantees to defense industry enterprises this year, to ensure weapons are delivered on time in accordance with the national procurement program, Prime Minister Dmitry Medvedev said on Monday.
“The resolution [signed by Medvedev] provides for the allocation of 40 state guarantees worth 265 billion rubles for loans which will be granted to 26 companies from the defense and industrial complex,” Medvedev said.
The provision of state guarantees is the first this year, Medvedev said, and stressed the beneficial effects it would have on the economy as a whole.
“Everything invested in the defense industry has an influence on industry. Actually, the defense sector helps boost adjacent industries,” he said.
State guarantees allow defense enterprises to obtain loans at a time when they face a shortage of working capital and have no other sources of financing, Medvedev said.
