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SECURITY > Defense Industry

Defense Ministry decides not to ask contractors for payment moratorium

  • December 22, 2018
  • , Asahi , p. 4
  • JMH Translation

The Defense Ministry has decided this fiscal year not to ask 62 Japanese defense contractors for changes to their contracts. In response to the rapid increase in the purchase of U.S. defense equipment, the ministry had hoped to postpone payment to Japanese companies that provide parts for aircraft and naval vessels by two to four years 

 

“We have made the decision by taking everything into consideration,” an accounting official of the ministry said. However, according to a source, the ministry was unable to gain the understanding of the defense contractors.

 

In November the ministry met with the contractors over its intended changes to the contracts, aiming at temporarily reducing payments by about one billion yen.

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