Israel's defense industries owed NIS 1 billion by country
The absence of a budget and the delay in the approval of the IDF's multi-year plan are preventing the transfer of funds from the Ministry of Defense to Israel Aerospace Industries, Elbit and Rafael
Udi Etsion | 12:48 30.03.2021
The Ministry of Defense owes the local defense industries a total of NIS 1 billion (approximately $300 million). The ministry has reduced its debt to Israel Aerospace Industries (IAI), Elbit Systems and Rafael Advanced Defense Systems over the past year, but it still owes the three around NIS 1 billion in deferred payments. The political turmoil in Israel over the past couple of years has meant that the government hasn't approved a state budget for either 2020 or 2021. The heightened tension between Prime Minister Benjamin Netanyahu and defense minister Benny Gantz has also resulted in the IDF's multi-year plan being put on hold, making it difficult for the ministry to pay its suppliers and for the military to order new equipment.
The defense industries haven't publicly disclosed what they are owed, but it is believed that the IAI and Elbit are each awaiting payments in the region of NIS 350 million, while Rafael is owed around NIS 300 million.