The Serbian National Assembly has approved a loan agreement worth €1.9 billion with several French financial institutions to fund the acquisition of 12 Rafale fighter jets, marking one of the largest military investments in the country’s history, BGNES writes. The purchase is part of Serbia’s broader plan to overhaul and modernize its air force and defense capabilities, replacing its outdated fleet of Soviet-era MiG aircraft.

The Rafale deal, initially agreed upon in August 2024 during French President Emmanuel Macron’s visit to Belgrade, includes nine single-seat and three two-seat jets at a total cost of €2.7 billion. According to the newly ratified legislation, €823.5 million has already been paid as an advance, while the remaining amount will be financed through loans from a consortium of French banks and credit institutions.

The law specifies the lenders involved and the corresponding loan amounts: Bred Banque Populaire (€163.3 million), Crédit Agricole (€345.87 million), Crédit Industriel et Commercial (€345.87 million), Crédit Lyonnais (€163.3 million), Société Générale (€422.73 million), and Natixis (€480.37 million).

Speaking to lawmakers last week, Finance Minister Siniša Mali emphasized that the Rafale acquisition is part of a long-term strategy aimed at fully modernizing the Serbian military. He described it as the most significant defense investment Serbia has undertaken to date.

Delivery of the aircraft is scheduled to begin in early 2028. From that point, Serbia expects to receive one aircraft each month until the full fleet has been delivered, Mali added.

Source: BGNES