Thailand rejects US loan terms for F-16 jets
Defence Minister Phumtham Wechayachai confirmed today that Thailand will not move forward with the purchase of F-16 fighter jets from the United States, citing the unfeasibility of meeting the stringent loan conditions attached to the deal.
Phumtham explained that the US required Thailand to take out a loan from a US-based bank to cover the entire cost of the fleet upfront, which he said was not a viable option for the country. He added that Thailand has other financial priorities that require attention and resources.
The defence minister’s comments today, April 21, come amid speculation that the US government might push Thailand to boost spending on American military equipment in an effort to reduce the trade surplus between the two countries and avoid import tariffs.
Phumtham said he would await the outcome of Deputy Prime Minister and Finance Minister Pichai Chunhavajira’s upcoming meeting with US officials on April 23. Pichai is expected to report back to the Cabinet on any developments and potential requests from the US government.
While no final decision has been made on the alternative purchase of Swedish Gripen jets, Phumtham made it clear that the US loan conditions were unacceptable.
Experts in military procurement suggest that the Royal Thai Air Force might prefer the Gripen jets due to a more favourable deal from the Swedish manufacturer.
Phumtham also revealed that no decision had been made regarding the acquisition of additional C-130 military transport aircraft, as he was waiting for further details from Pichai’s negotiations with the US. He added that no procurement plan from the Royal Thai Army for Stryker armoured vehicles had been presented either.
The defence minister noted that the military budget for the 2026 fiscal year is still pending, meaning the final budget allocations for each branch of the armed forces are yet to be determined, reported The Nation.
Before concluding his remarks, Phumtham visited the 11th Infantry Division in Lop Buri’s Phatthana Nikhom district, where he was scheduled to observe a military exercise.
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