The Dutch government has made €270 million available to help Damen Naval shipyards out of financial difficulty, various sources close to the agreement have told broadcaster NOS.

The production of six German frigates has encountered problems, partly due to software issues, and the German navy has now imposed deadlines on the company and withheld some payments, NOS said.

It is in the government’s interest to support Damen Naval, NOS said, because the Dutch armed forces also have orders with the company. The defence industry has taken on greater strategic importance amid ongoing geopolitical tensions.

Both houses of parliament have been briefed on the deal in secret because they were required to approve it. The senate voted in favour on Tuesday and the lower house will be recalled from the summer recess on Thursday to have its say.

NOS said it did not know if the money was in the form of a loan or a guarantee. However, the Financieele Dagblad, which has seen the paperwork relating to the deal, said it will be a bridging loan.

Caretaker economic affairs minister Vincent Karremans has told MPs he expects to provide them with more details in the second half of July, the paper said.

Neither the economic affairs nor defence ministries, nor Damen itself, have commented on the report.

In April, the Dutch public prosecution department confirmed it plans to bring legal action against parent company Damen Shipyards and several executives, accusing the company of bribery, money laundering and breaching sanctions against Russia.

Two separate cases are involved: one concerning bribery between 2006 and 2017, and the other relating to Russian sanctions.

Gorinchem-based Damen Shipyards has 35 wharves in 10 countries and a workforce of around 12,000. Damen Naval produces naval vessels for several European countries.