Canada to boost defence industry with state-backed financing plan

Canada is boosting support for its defence industry by involving a state-owned bank to provide financing and investment for companies in the security sector.

The Canadian government plans to use the Business Development Bank of Canada to issue loans and venture capital to enterprises operating in the defence field, Caliber.Az reports via foreign media.

The decision, included in the new federal budget, is seen as a tool to expand the country’s domestic manufacturing base and support technology companies.

Under Prime Minister Mark Carney’s proposed budget, Canada will allocate about 82 billion Canadian dollars (approximately 58 billion U.S. dollars) over the next five years to modernise its armed forces.

The funding will go toward increasing military salaries, enhancing cybersecurity, and replenishing stocks of ammunition, drones, and armoured vehicles.

A total of 6.6 billion Canadian dollars has been earmarked for the implementation of the defence industrial strategy.

These funds will be directed toward developing domestic supply chains to ensure that a greater share of defence contracts is fulfilled by Canadian companies.

This approach is also intended to offset losses suffered by steel and aluminium manufacturers as a result of U.S. tariffs.

By Vugar Khalilov