The Radical Left Coalition government of Alexis Tsipras has reportedly signed  the country’s first major defense deal in 10 years, approving the modernization of five older naval support aircraft by US contractor Lockheed Martin.

The deal’s price tag is an estimated 500 mln US dollars.

According to reports, the was decision taken on Sunday, March 15, following a recommendation by Defense Minister Panos Kammenos, who heads the right-wing anti-austerity ANEL party, which is a junior coalition partner of the current government. The agreement was also signed by Foreign Minister Nikos Kotzias, Citizens Protection Minister Yiannis Panousis as well as Alternate Economy, Infrastructure, Maritime and Tourism Minister Thodoris Dritsas.

The leftist government has already authorized a down payment of 45 mln dollars to the US multinational as a first installment so that the upgrade can begin. The contract comes at a time when state coffers are running low – practically depleted – with speculation over whether Greece will manage to pay its next installment to the International Monetary Fund in April, as well as pensions and public sector wages. What’s also noteworthy is the fact that Dritsas, one of the Cabinet members who signed the agreement, was a staunch critic of weapons expenditures when the previous New Democracy-PASOK coalition government was in power.

The modernization plan is a 7-year program and includes the maintenance and support of five of the six P-3B Orion turbo-prop aircraft granted to Greece by the United States during 1991 and 1992. The Greek government hopes to extend their life span for another 15,000 flight hours. They had been in the service of the Hellenic Navy until 2009 but were withdrawn as their modernization had been considered too costly.