French Banks Might Finance Egyptian Rafale Fighter Purchase

French banks and an insurance company are expected finance the approximate Euro 6 billion required to purchase 24 Dassault Rafale fighters and a DCNS frigate.

Half the amount could come from Coface (French Insurance Company for Foreign Trade) and the rest as loan from a consortium of banks, according to a report in Les Echos publication last Friday.

It is unclear if Egypt will buy the aircraft on loan from French banks or will stand sovereign guarantee for the Egyptian Air Force or MoD which will take the loan to pay Dassault.

The deal is expected to go through quickly as there is no transfer of technology requiring complex negotiations as is the case with Dassault’s India. Talks are on since 2012 for the sale of 126 fighters, 16 in flyaway condition and 108 to be manufactured in India.

Eric Trappier, CEO of Dassault was quoted as saying in Le Figaro on Saturday (Translated from French): "We are close to succeeding the first export contract for the Rafale. We have several prospects in the Middle East. In Egypt, there are still several steps to go. We conduct in-depth work with India which is a very complex issue in terms of industrial assembly. And we have other campaigns for Rafale, including in Europe."