Israel’s Defense Ministry owes IAI nearly 6 billion shekels
Israel’s Ministry of Defense owes the state-owned company Israel Aerospace Industries (IAI) nearly 6 billion shekels, IAI chairman Boaz Levy said. According to him, the debt complicates maintaining the scale of defense production during the war, although the company has not yet delayed production.
As The Jerusalem Post reports, Levy said in an interview with radio station 103FM that Israel’s Ministry of Finance should allocate additional funds and the Ministry of Defense should settle the outstanding payments. He noted that the defense ministry is IAI’s main customer and that the company’s employees work around the clock.
Financial burden for IAI
Levy estimated that this is a significant amount for the company. He explained that the debt should be repaid through additional budget allocations, while the budget must also increase due to the need to expand production during the war.
The IAI chairman stressed that the company is not holding back production and is bearing the financial burden itself. At the same time, he said that maintaining production with such a debt is becoming more difficult every day. Funding issues, Levy noted, are discussed daily.
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Possible IPO and the LORA missile
Levy also said that the process of preparing IAI for a possible initial public offering has been underway for several years following the relevant government decision. According to him, this concerns the sale of a minority stake, while IAI is to remain a state-owned company. The state will receive the proceeds from the share offering and dividends, he said.
IAI has already completed part of the procedures for going public, including the preparation of quarterly reports, Levy said. The company is discussing the matter with the Securities Authority and subsequently expects approval from the Ministry of Justice regarding a confidentiality certificate.
Separately, Levy commented on the test of the LORA ballistic missile from aboard a German Navy ship. He said that there is no contract yet for supplying the system, but IAI hopes to conclude one. According to the company chairman, the missile was launched over a long distance, and the test result satisfied the German Navy. Levy added that LORA already has confirmed operational use.
