Report Thailand Declines US Loan Deal for F-16 Jets Over Tough Terms

[webfact]

Thailand has officially stepped back from purchasing F-16 fighter jets from the US due to challenging loan conditions. Picture courtesy of Lockheed Martin

 

Defence Minister Phumtham Wechayachai disclosed today that the US demanded an upfront loan from a US bank for the entire fleet's cost, which Thailand finds financially unfeasible. The minister emphasized the nation's focus on addressing other pressing financial needs.

 

Phumtham's announcement on April 21 comes amid talks of a potential US push to increase Thailand's spending on American defence equipment. This move could be part of efforts to balance trade relations and prevent additional import tariffs.

 

Nonetheless, Phumtham awaits the verdict of Deputy Prime Minister Pichai Chunhavajira's talks with US officials, scheduled for April 23, before any further steps are taken.

 

Though the decision on procuring Swedish Gripen jets is pending, Phumtham remarked that Swedish terms were notably more appealing than those from the US. Military procurement experts suggest the Royal Thai Air Force might lean towards Gripen jets if a better deal is confirmed.

 

 

 

Discussions regarding C-130 military transport aircraft and Stryker armoured vehicles remain ongoing, with tentative plans awaiting developments from Pichai's engagement with the US.

 

The 2026 fiscal year military budget is still unsigned, leaving room for final adjustments regarding armed forces allocations. Following his press briefing,

 

Phumtham joined a military exercise at the 11th Infantry Division in Lop Buri’s Phatthana Nikhom district, marking another crucial step in Thailand's ongoing defence readiness amidst these procurement challenges.

 

Adapted by ASEAN Now from The Thaiger

 

-- 2025-04-22

 

 

[ozz1]

What are they running out of money just print some more  they seem to spend a lot on the military with no results they aren't even game to take on the burmese at the border

[Tropicalevo]

4 hours ago, webfact said:

The minister emphasized the nation's focus on addressing other pressing financial needs.

 

Like submarines?

[klauskunkel]

5 hours ago, webfact said:

the US demanded an upfront loan from a US bank for the entire fleet's cost, which Thailand finds financially unfeasible.

The US did its research on Thai governments...

[hotchilli]

5 hours ago, webfact said:

The minister emphasized the nation's focus on addressing other pressing financial needs.

As yet unfinished and sub-standard submarines ?

[mfd101]

(1) Swivelling to the Swedes. Don't need the more expensive F16s any more.

 

(2) Negotiating on tariffs.

 

(3) Combine (1) and (2), et voilà!

[Brn2Trvl]

6 hours ago, webfact said:

Phumtham

Well done.

[Dexxter]

The USA has become an unreliable "ally" under Trump. The supposed "kill switch" on US military equipment also makes them much less desirable and unreliable if the USA decides Thailand is not its friend in future.

[PETERTHEEATER]

2 hours ago, Tropicalevo said:

 

Like submarines?

And 10k for each Thai citizen Part 3?

[Scouse123]

A military that spends loads of money on serious hardware with no regional threats.

 

AN ARMY USED FOR THE SOLE PURPOSE OF CONTROLLING THE POPULATION.

 

Then they moan they are struggling with their budgets, which I don't think they are.

[jcmj]

For a country that never engages in war and only fights off illegal fishing in Thai waters I don’t see the need to spend too much money on their military. 

[Purdey]

It makes sense to rely less on the U.S. for military equipment and perhaps turn to other competent, less expensive, sources. Better still, improve maintenance on what you have and spend the money on improving the economy at home. 

[newbee2022]

8 hours ago, webfact said:

Thailand has officially stepped back from purchasing F-16 fighter jets from the US due to challenging loan conditions. Picture courtesy of Lockheed Martin

 

Defence Minister Phumtham Wechayachai disclosed today that the US demanded an upfront loan from a US bank for the entire fleet's cost, which Thailand finds financially unfeasible. The minister emphasized the nation's focus on addressing other pressing financial needs.

 

Phumtham's announcement on April 21 comes amid talks of a potential US push to increase Thailand's spending on American defence equipment. This move could be part of efforts to balance trade relations and prevent additional import tariffs.

 

Nonetheless, Phumtham awaits the verdict of Deputy Prime Minister Pichai Chunhavajira's talks with US officials, scheduled for April 23, before any further steps are taken.

 

Though the decision on procuring Swedish Gripen jets is pending, Phumtham remarked that Swedish terms were notably more appealing than those from the US. Military procurement experts suggest the Royal Thai Air Force might lean towards Gripen jets if a better deal is confirmed.

 

 

 

Discussions regarding C-130 military transport aircraft and Stryker armoured vehicles remain ongoing, with tentative plans awaiting developments from Pichai's engagement with the US.

 

The 2026 fiscal year military budget is still unsigned, leaving room for final adjustments regarding armed forces allocations. Following his press briefing,

 

Phumtham joined a military exercise at the 11th Infantry Division in Lop Buri’s Phatthana Nikhom district, marking another crucial step in Thailand's ongoing defence readiness amidst these procurement challenges.

 

Adapted by ASEAN Now from The Thaiger

 

-- 2025-04-22

 

 

Good decision so far. Don't buy the US crap. Alternatively contact the EU. The Gripen, Raffale or Eurofighter are are worth to look at

[JJ-Thailand]

 Buy Swedish Gripen instead, a great plane.

[NoDisplayName]

Shenyang J-35 stealf' fighters, only $70-85 million each, as opposed to $145 million each for 4 F-16's.  (19 billion baht)

 

2 engines included, no assembly required.

 

[liddelljohn]

50% of the Thai Military budget is diverted in Generals, Air marshals , politicians  and Admirals pockets ,, the other 50% is wasted

[AjarnRichard]

I agree with many.  The Military Industrial Complex of the US Government is a power hungry, war generating enterprise that will suck Thailand dry on the cost of spare parts for their jets.
Likewise I agree with the Thai officials... there are a much better use for this money in Thailand, for both infrastructure and building innovation capacity (R&D) among its people.  Develop new industries, and build strong linkages across the Asian frontier.
War machines (fighter jets) are for war mongers!  Not peace-loving people.
 

[MalcolmB]

13 hours ago, webfact said:

the US demanded an upfront loan from a US bank for the entire fleet's cost, which Thailand finds financially unfeasible.

Gee Americans are selfish entitled pigs.

Not enough for them to profit on the sale but want the interest on the loans also.

Tell them to shove it Thailand.

[Captor]

11 hours ago, JJ-Thailand said:

 Buy Swedish Gripen instead, a great plane.

The swedes are building excellent submarines as well... 

[newbee2022]

17 hours ago, NoDisplayName said:

Shenyang J-35 stealf' fighters, only $70-85 million each, as opposed to $145 million each for 4 F-16's.  (19 billion baht)

 

2 engines included, no assembly required.

 

Delivered by LAZADA or TEMU ??😳

[billd766]

22 hours ago, klauskunkel said:

The US did its research on Thai governments...

Perhaps the Thai government did its own research on the current US government and decided that the Gripen was cheaper to buy, cheaper to fly, cheaper to maintain and a better buy all around.

 

Not to mention, that the current US government under Trump is far less trustworthy than the Swedish government.