Bombardier to repay $372.5M in federal loans over 15 years
Bombardier’s chief financial officer says it will take 15 years for the company to repay the $372.5-million loan from Ottawa that was announced last week.
During a quarterly earnings conference call, John Di Bert said there won’t be any repayments to federal coffers for two years.
Di Bert said repayments will be based on the number of Global 7000 business jets and CSeries commercial aircraft sold.
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He said the Montreal-based aerospace giant expects to receive the money in instalments over four years, with anywhere between $70 million and $100 million flowing to the company annually.
The aid to Bombardier has been the subject of much public criticism, but the federal government and the company have both defended the merits of the assistance, saying it’s needed to preserve jobs and compete globally.
Brazil has filed a complaint before the World Trade Organization, accusing Canada of unfairly subsidizing Bombardier, an allegation both the company and the federal government reject.
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