(DEFENCE SECURITY ASIA) — The United States has reportedly offered lower interest rates to Thailand if the Southeast Asian nation opts to purchase Lockheed Martin’s F-16 Block 70 fighter jets instead of Sweden’s JAS39 E/F Gripen.
According to the Bangkok Post, sources revealed to the Thai Ministry of Defense that the U.S. made this low-interest rate offer just days after the Swedish-made fighter jets were reported to be Thailand’s preferred choice.
Royal Thai Air Force (RTAF) Commander ACM Phanphakdee Phattanakul has reportedly presented details about the JAS39 Gripen E/F and F-16 Block 70 jets to Defense Minister Sutin Klungsang and Prime Minister Srettha Thavisin for a decision.
“We need to wait and see what Sweden’s Saab will offer to counter the U.S. proposal,” the source stated.
The source also mentioned that the Thai government would not rush its decision and would allow the American and Swedish companies to compete against each other.
RTAF officials, including the Commander, visited the Thai Parliament last Wednesday to present the budget proposal for the military branch, with the fiscal year 2025 budget starting on October 1.
When asked by reporters, ACM Phanphakdee said he had discussed with the Defense Minister the need for new fighter jets for the RTAF. He noted that the Defense Minister would submit the RTAF’s proposal to the Prime Minister.
Currently, the RTAF operates around 50 F-16 fighter jets and 11 JAS39 Gripen fighter jets.
Last month, Saab opened its facilities in Sweden to Thai media to provide a closer look at its advanced capabilities, as reported by the Bangkok Post.
The visit included a tour of the Gripen E/F fighter jet production facilities, the latest variant offered to the RTAF.
Signs that Thailand might choose the Gripen have been apparent for several months, becoming more pronounced recently with ACM Phanphakdee and other senior officials’ visit to Sweden in early May for further discussions with Saab’s senior management.
Recently, Thai Defense Minister Sutin Klungsang stated that the United States had offered a loan to Thailand for the bulk purchase of F-16 Block 70 fighter jets.
The Thai government frequently purchases fighter jets in stages; for example, four jets this year and another four the next year until a squadron of 12 jets is completed.
According to Sutin, the U.S. loan offer was communicated by U.S. Ambassador to Thailand Frank Godec during their meeting at the Ministry of Defense in Bangkok. Godec offered the loan for Thailand to purchase the F-16 jets in bulk rather than in stages.
“However, if Thailand accepts the U.S. loan offer, we would have to bear a high-interest rate,” he said, adding that other countries have also offered loans to Thailand for acquiring fighter jets. — DSA