Bush Asks Congress To OK $3.8 Billion Loan To Poland For F-16 Buy

InsideDefense.com
September 17, 2002

Bush Asks Congress To OK $3.8 Billion Loan To Poland For F-16 Buy

The White House has asked Congress to approve an amendment to the fiscal year 2003 budget providing for a $3.8 billion, 15-year loan to Poland for the purchase of 48 Lockheed Martin built F-16 fighter aircraft. The buy will head off any plans Poland has of buying a European-built fighter to meet its needs, the administration said.

President Bush sent the request to House Speaker Dennis Hastert (R-IL) on Sept. 13. The request covers programs budgeted by the agriculture, energy, interior and transportation departments as well as the International Assistance Programs and the National Capital Planning Commission.

The White House released a copy of Bush’s letter today.

Bush attached a detailed explanation of the amendment put together by Office of Management and Budget Director Mitchell Daniels. “This proposal would provide appropriate legislative authorization to implement a new, no subsidy-cost $3.8 billion Foreign Military Financing (FMF) 15-year loan to the government of Poland for the purchase of 48 F-16 aircraft, weapons, and related logistics support,” Daniels said.

“The FMF loan financing is essential to ensure that Poland is able to purchase the combat-proven F-16 aircraft, rather than European competitors,” he added.

Poland’s purchase of the Lockheed Martin Falcon would significantly improve the interoperability of its air force with NATO and the United States, which is an important U.S. objective and a goal of central European countries as well.

The deal calls for Poland to assume all of the costs or fees tied to the loan, including any associated with “non-payment exposure risks,” Daniels said. Poland would have 15 years to repay the money, including a grace period of up to eight years.

The amendment will not affect FY-03 outlays, according to the administration.