Canada's federal government announced C$372.5 million ($283 million) in repayable loans for two of Bombardier Inc's jet programs, far less than the $1 billion originally sought by the Canadian plane and train maker.
The loans, which come from a Canadian aerospace and defence fund targeting research and development projects, will be used for Bombardier's CSeries family of narrowbodies and the Global 7000 business jet, according to a statement from the government. The contributions will be provided over four years, in a number of installments, with the majority allocated to the Global 7000 program.
Bombardier initially asked Canada to match a $1 billion injection in the CSeries program from the province of Quebec in 2016. But negotiations dragged on for more than a year as the Liberals made requests of the company, such as changes to its dual class governing structure. Prime Minister Justin Trudeau's government is under pressure to invest in Montreal, Quebec-headquartered Bombardier, after his ruling Liberals unexpectedly won 40 of the province's 78 Parliamentary seats, far more than expected, in an October 2015 election.
