Review Warns of Financing Costs From Defense Ministry’s Unpaid Bills

An external review commissioned by the Government Companies Authority, disclosed on October 13, warns that unpaid Defense Ministry invoices could raise state procurement costs and constrain suppliers. Approved unpaid invoices owed to Rafael, Israel Aerospace Industries and Tomer totaled about NIS 14.3 billion at the end of June 2026, excluding Elbit. The review identifies financing costs of NIS 234 million for Rafael and NIS 329 million for IAI, without predicting immediate liquidity distress. The Finance Ministry points to substantial orders and some advance payments; the Defense Ministry says it is seeking financing-cost reimbursement arrangements and urges the Finance Ministry to meet state obligations.