Loans for fighter jets will cost nation an additional euro 3 billion over 15 years

The Polish air force's planned purchase of 60 fighter jets is predicted to cost twice as much as the government had originally estimated. In view of the ballooning budget deficit, the government will no longer pay for part of the planes with cash, and is now expected to finance the purchase of the planes entirely through loans to be guaranteed by the U.S. and European governments. According to Prawo i Gospodarka estimates, the government will pay euro 3 billion in interest over the 15 years it will take it to pay off the euro 3.8 billion in loans it will need to purchase the aircraft. Mateusz Szczurek, an analyst with ING Bank, questioned whether Poland can afford the purchase of 60 planes, despite NATO requirements. "The loan may not exert great pressure on the budget. But on the other hand Poland's foreign debt is unlikely to decrease during that time either," he said. Szczurek went on to say that whether the Polish government can afford the planes depends greatly on the state of public finances in 10 years time. (Prawo i Gospodarka, Aug. 18-19, pp.1, 4, 24) M.T.K.