POLITICS

Quebec giving $1 billion in financial support to buyers of Bombardier CSeries

04/03/2013 04:33 EDT | Updated 06/03/2013 05:12 EDT
MONTREAL - The Quebec government has agreed to provide $1 billion in financing help to buyers of Bombardier's new CSeries commercial aircraft, joining a similar practice by the federal government.

A decree dated March 7 but published Wednesday in the province's official gazette said the company "solicited the participation of the Quebec government to finance sales of this plane."

The government noted that final assembly of the aircraft will take place in Quebec and that the CSeries "presents a significant economic interest" for the province.

The aid will take the form of interest-bearing loans granted to buyers of CSeries aircraft, said Chantal Corbeil, spokeswoman of Investissement Quebec, the government agency that will manage the funding.

Governments in Canada, Britain and China will finance up to 85 per cent of the value of the planes. Quebec loans will represent up to 10 per cent of the value of the planes, Britain will contribute 18 to 20 per cent and China 12 to 15 per cent. Export Development Canada will contribute the remainder.

Since 1996, Quebec has provided $2.3 billion in loans to buyers of Bombardier CRJ regional jets with no material losses being recorded, said Corbeil.

In 2009, Quebec granted a repayable contribution of $117 million to Bombardier for the CSeries development.