US offers lower interest rates on F-16s jets to sway Thailand

The United States proposed lowering the interest rates for the Royal Thai Air Force (RTAF) to purchase F-16 fighter jets in a bid to persuade the Thai government to choose American-made aircraft over Sweden’s Gripen jets.

According to a Defence Ministry source, this offer follows the RTAF’s recent announcement that it is considering the Gripen jets, following a procurement committee study which deemed the Gripen E/F as the most suitable for their needs. The RTAF commander, ACM Punpakdee Pattanakul, forwarded the study’s findings to Defence Minister Sutin Klungsang for further consideration.

Sources indicate that the RTAF commander disclosed the study’s results to the media to avoid any potential political interference that could affect the final decision.

Upon learning about the preference for the Gripen jets, the US quickly responded with an offer to reduce the interest rates on the F-16 Block 70/72 jets from 5% to 3.5%, along with an extended repayment period.

Further details on the repayment terms were not disclosed. The Defence Ministry source now awaits an offer in response from the Sweden-based fighter jet producer.

“Let’s see what offer Saab, who manufactures the Gripen jets, comes up with to compete with the US.”

Sutin is scheduled to visit the US soon for additional discussions regarding the F-16 deal. The source noted that he has not yet reviewed the RTAF’s study or advised the prime minister on which jet to purchase. However, the final decision is expected to align with the RTAF’s study.

The government is not rushing its final decision, allowing both the US and Sweden time to present their best offers for the deal, reported Bangkok Post.

In related news, a lawmaker from the opposition Thai Sang Thai Party (TST) raised the alarm over a plan to procure digital transceivers by the Royal Thai Air Force, alleging that the proposed price significantly exceeds the market value.