We are borrowing from the Americans for the purchase of F-35 jets

The government has given the green light to the purchase of US arms and military equipment worth 12 billion dollars, on the basis of a loan through the Foreign Military Financing mechanism, offered by the US, an amount of which more than half will go, according to some sources from the Ministry of National Defense, for the purchase of the 32 F-35 fighter jets. The Emergency Ordinance adopted in yesterday's meeting by the Ciolacu Cabinet shows that this type of instrument for financing the government's public debt by amending and supplementing GEO 64/2007 on public debt.

According to a press release from the Executive, within the Foreign Military Financing mechanism, funds of up to 4 billion dollars are approved for direct loans, with the possibility of repayment in 12 years, after a one-year grace period, at an advantageous interest rate (close to of the US cost of financing, to which a margin is added), as well as funds of up to 8 billion dollars, attracted by contracting loans from the financial markets, guaranteed by the US Government.

According to the normative act approved yesterday, the contracts for the purchase of military technique/equipment of the Ministry of Defense, as well as other contracts carried out by state companies, which are included in the National Defense Strategy and which could be eligible for financing in within this mechanism.

In the Foundation Note of the normative act, it is shown that through a memorandum of July 2024, the Government approved the initiation of steps for the use of the FMF financing mechanism offered by the USA for the purpose of financing some contracts to ensure military capabilities for our country. In order to be able to use the direct loan facility offered by the US within this mechanism in 2024, the signing of the loan agreement between the two governments must be completed by September 30, 2024, and that is why the Executive resorted to the emergency ordinance procedure .

Sources from the Ministry of National Defense told us that the main purchase from the loans that will be contracted from the FMF refers to the 32 F-35 fighter jets, for which 6.5 billion dollars are needed. The estimated time for the signing of the first contract is October 2024 - January 2025. The rest of the amount that we can borrow through the American financing mechanism will be allocated to the other programs of the MApN for the acquisition of weapons and American military equipment: the modernization of missile-carrying ships with missile systems NSM - launchers with 8 NSM missiles on each NPR (375 million euro program), purchase of maritime patrol vessels, kamikaze drones, etc.