Sweden Reduces Interest Rate For Brazilian Gripen NG Fighter Deal

Brazil and Sweden have agreed on reducing the commercial interest rate on the purchase of 36 Gripen NG fighter jets for the Brazilian Air Force.

Brazil is now looking at refinancing its procurement of the Saab Gripen fighters after reduction of interest rate from 2.54 to 2.19 per cent applied by the Swedish Export Credit Corporation. The rate is according to the member countries of the Organization for Economic Cooperation and Development (OECD). Since Swedish Krona recently weakened, the jets should be a little cheaper now.

Brazil had decided to cut the amount of funding it planned to take from Sweden in June based on the original US$ 5.4 billion sales contract’s announcement in October 2014.

The revised agreement will now be transferred to Brazil’s Federal Senate to be signed-off. Meanwhile, Brazilian prosecutors announced in April 2015 that they were planning to investigate the $5.4 billion Gripen deal.