Phumtham Says Thailand cannot obtain US loans to buy new F-16 fleet

Defence Minister Phumtham Wechayachai said on Monday that the Ministry of Defence could not proceed with the purchase of a new fleet of F-16 fighter jets from the United States due to a restrictive loan condition.

Phumtham explained that the US government required Thailand to obtain a loan from a US-based bank to fund the purchase of the fleet in one lump sum—something that is not feasible. He added that Thailand had other priorities for which it needed to seek and utilise loans.

Loan Condition Unacceptable, Gripen Still a Possibility

Phumtham was responding to speculation that the US government might push Thailand to increase spending on American armaments as a way to reduce its trade surplus with the United States and thereby avoid punitive import tariffs.

He said he would wait for Deputy Prime Minister and Finance Minister Pichai Chunhavajira to meet with the US government on Wednesday. Pichai is expected to brief the Cabinet on the outcome of the talks and any potential requests from Washington.

Although the Cabinet has not yet made a final decision regarding the purchase of a new fleet of Gripen fighter jets from Sweden as an alternative to the F-16s, Phumtham noted that the loan condition from the US was unacceptable.

Experts in military procurement suggested that the loan condition served as a convenient reason to reject the US offer, as the Royal Thai Air Force reportedly prefers the Gripen jets over the F-16s due to a more favourable offer from the Swedish manufacturer.

No Decision Yet on C-130s or Stryker Vehicles

Phumtham also stated that he had not yet considered acquiring additional C-130 military transport aircraft to replace ageing models, as he was waiting to hear the results of Pichai’s negotiations with the US.

Additionally, he said he had not yet seen any procurement plan from the Royal Thai Army regarding the potential purchase of new Stryker armoured fighting vehicles from the United States.

Phumtham noted that the military budget for the 2026 fiscal year has not yet been finalised, so the specific budget allocations for each branch of the armed forces remain unknown.

The defence minister made these remarks to reporters prior to his afternoon visit to the 11th Infantry Division in Lop Buri’s Phatthana Nikhom district, where he was scheduled to observe a military exercise.