U.S. Lowered Interest Rate For Royal Thai Air Force’s F-16V Block 70 Acquisition

According to a source in the Defence Ministry on Monday, the United States has offered to lower the interest rates for the purchase of F-16 fighter jets by the Royal Thai Air Force in an effort to persuade the Thai government to choose the American-made jets over Sweden’s Gripen fighter aircraft.

The offer came after the RTAF revealed last week that it is considering purchasing the Gripen jets over the F-16s. The RTAF cited a study by the Air Force’s procurement committee that found the Gripen E/F to be most suited to the Air Force’s needs.

RTAF commander ACM Punpakdee Pattanakul forwarded the study results to Defence Minister Sutin Klungsang for further deliberation last week.

The source said the RTAF commander announced the report’s conclusion to the press last week “to prevent political interference that could change the final decision”.

However, shortly after learning of the government’s preference for the Gripen jets, the US immediately offered to lower the interest rates for the procurement of the F-16 Block 70/72 jets from 5% to 3.5% “with an extended repayment period”, said the source, without providing further details about the repayment terms.


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

The source added that Mr Sutin is due to visit the US soon, during which more discussions about the F-16 deal will be held.

“He has yet to review the RTAF’s study and advise the prime minister as to which jet the government should purchase. The final decision, however, is expected to be no different [to the RTAF’s study],” said the source.

The source said the government won’t be making its final decision soon about allowing the US and Sweden to compete for this deal.

The source said ACM Punpakdee will attend the Royal Military Air Tattoo 2024 and the Farnborough International Airshow in England.

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