Defense Ministry proposes government loan deal in multi-task jet purchase

Yesterday the Defense Ministry (MON) announced that it would make its decisi on on the purchase of a multi-purpose jet if the vendor's government grants Poland a direct loan. In this way the Ministry plans to save $1 billion on t he contract. During yesterday's press conference, Defense Minister Janusz Ze mke said, "All the companies taking part in the tender have proposed commerc ial loans with government guarantees and interest amounting to 7-8%. We thin k the order is so large that we should get a loan directly from the governme nt of the vendor country with interest not exceeding 4%". According to MON's proposals, the planes would be bought by the vendor's government. Poland wou ld pay annual installments of between euro 120million and euro 190 million f rom 2003 to 2009 and the balance would then be paid between 2009 and 2015. P oland would pay $3.5 billion in total for the planes. The final offers for t he contract to supply the aircraft are to be submitted to the government by November 12 this year. (Gazeta Wyborcza, p. 8; Prawo i gospodarka, pp. 1, 3) M.M.