Navantia will receive 2.196 billion in interest-free loans for three naval programs

The Government has approved the direct granting of 2.196 billion euros in reimbursable advances, in the form of loans, to the public company Navantia, SA, S.M.E. to finance three naval programs of interest to Defense. The measure is articulated through Royal Decree 922/2026, of October 28, published in the Official State Gazette (BOE) No. 270, of October 30, 2026, in Section I of general provisions, page 145300, with official reference BOE-A-2026-22716. The loans are granted at an interest rate of zero percent, fixed and non-adjustable, and generally without the requirement of guarantees.

The regulatory text is signed by the Minister of Industry and Tourism, Jordi Hereu Boher, and was elevated following the deliberation of the Council of Ministers at its meeting on October 27, 2026, with a report from the Ministry of Finance and the authorization of the State Secretariat for Budgets and Expenditures. The grant is supported by article 22.2.c) of Law 38/2003, of November 17, General Law on Subsidies, and article 346.1.b) of the Treaty on the Functioning of the European Union: it is considered that the financed activities are necessary to protect essential national defense and security interests and correspond to actions of a military nature.

The chosen formula is pre-financing, already employed by the Ministry of Industry and Tourism in previous programs. The decree recalls the Framework Agreement signed in October 1996 between Industry and Defense, the Industrial and Technological Plan for Security and Defense launched in April 2025 with 35 new special modernization programs, Royal Decree 813/2025, of September 16, regarding loans to Navantia, and the General Protocol of Action signed by both ministries on March 25, 2026. The funds are allocated to budget application 20.09.464B.823 of the General State Budgets of 2023, extended for 2026.

European corvettes, minehunters and fleet

Annex I of the decree distributes the financing among three programs, with Navantia as the sole beneficiary:

• 1.786 million euros for the delegated management program at OCCAR (Organisation Conjointe de Coopération en matière d’Armement), intended for the development and construction of six European Patrol Corvette (EPC) class corvettes, Spanish variant, within the framework of the permanent structured cooperation PESCO and the European Defence Fund.
• 210 million euros for the modernization and evolutionary development of the “Segura” class minehunters, direct management, with six platforms and the update of the AN/SQQ-32 (V)2 sonar to version (V)3+, replacement of the command and control system with SCOMBA, and the integration of unmanned vehicles and cyberdefense.
• 200 million euros for the modernization and evolutionary development of fleet units, with three logistical plans (2 amphibious assault ships, 2 combat supply ships, and 6 maritime action ships) and the first technological insertion in the four S-80 class submarines of Series I.

A schedule extending to 2031

The loan is multi-year and is distributed over six fiscal years, according to Annex I:

• 2026: 331 million (156 for the corvettes, 75 for the minehunters, and 100 for the fleet).
• 2027: 347 million; 2028: 422 million; 2029: 388 million; 2030: 362 million; 2031: 346 million.
• The repayment schedule to the Public Treasury will be established in each granting order, independently by program, and no amortization will be required without the prior receipt of payment from the Ministry of Defense.

Fifteen days to apply and six months to resolve

The procedure begins with the entry into force of the regulation, the day following its publication. Navantia has fifteen business days to submit the application electronically to the General Directorate of Industrial Programs, the instructing body through the Sub-Directorate General for the Promotion of Industrial Projects; the maximum period for resolution is six months, with negative administrative silence. The advance payments for 2026 milestones will require a 10 percent guarantee with the General Deposit Fund, and if the legal business with Defense is not formalized before October 31, 2027, the company must return the entirety of the loan received. Execution will be justified with semi-annual reports, and the aid will be published in the National Grants Database.

The impact is twofold: it ensures workload and technological development in Navantia shipyards—with lines such as the SCOMBA combat system, integrated platform control and communications systems, the digital twin, or a 4D AESA radar—and commits public accounts to loans with no financial cost for the company, but with staggered repayment until 2031 and an implicit State guarantee for the financing of national defense.

Source: Official State Gazette, no. 270, October 30, 2026, Section I (General provisions), page 145300 (official reference: BOE-A-2026-22716).