The war in Ukraine, together with the cooling of relations between Europe and the US, is forcing European authorities and national governments alike to be more accommodating to the defence industry. The Czech Republic is also making progress. It has increased the capital of the state-owned Export Guarantee and Insurance Corporation (EGAP) by half a billion crowns. The money is intended specifically for armaments manufacturers, which will find it easier to access bank loans. 

"We welcome any activity, there is never enough money. We expect EGAP's capital to increase next year," Jiří Hynek, head of the Association of Defence and Security Industry, told e15.

Billions more are needed

The interest group of more than 100 companies would also like the government to support the National Development Bank. It too is fully state-controlled. "It has only European money at its disposal, which cannot be used for defence production. It would be very desirable for this bank to obtain at least units of billions of crowns from Czech national resources for the development of the arms sector," Hynek stressed.

The cabinet decided on Wednesday to increase EGAP's capital. The measure will ensure guarantees for loans to Czech armourers in the amount of five billion crowns. "This is another programme of support for this sector, which is one of the necessary steps to strengthen the security of the Czech Republic. In addition to increasing spending on the army, it is important that we strengthen the production capacities of our companies," said Prime Minister Petr Fiala (ODS). The aim, he said, is to help small and medium-sized enterprises in particular, which have difficult access to commercial financing.

Source: E15 magazine