California governor Arnold Schwarzenegger has authorised a $150m (about R10bn) loan to fund the state’s moribund stem cell institute, a day after United States President George W Bush vetoed a measure to expand federal funding of embryonic stem cell research.

Schwarzenegger said the state could not afford not to fund the science associated with stem cells.

In a letter to his finance director authorising the loan on Thursday, Schwarzenegger said,that he remain committed to advancing stem cell research in California, in the promise it holds for millions of our citizens who suffer from chronic diseases and injuries that could be helped as a result of stem cell research.

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