The Government of Serbia has adopted a draft law confirming the Agreement on a credit arrangement between the Republic of Serbia and a group of French and European financial institutions to finance the purchase of 12 Rafale multi-purpose combat aircraft.
The value of the commercial agreement with Dassault Aviation is EUR 2,745,000,000, and Serbia has secured a loan of up to EUR 1,921,500,000 to finance the project. This loan will be paid directly to Dassault Aviation for the goods and services provided under the contract, while the remaining amount will be covered by advance payments from budget funds.
The credit arrangement was made with banks including Bred Banque Populaire, Credit Agricole Corporate and Investment Bank, Credit Industriel et Commercial, Credit Lyonnais, Natixis, and Societe Generale, who act as authorized lead arrangers. Natixis also has additional roles including global coordination, structuring, documentation, and serving as ESA Agent.
The loan is structured with a variable interest rate based on the six-month EURIBOR plus a fixed margin of 0.98% per year. The funds will be available for 57 months from the contract signing date, and the repayment period will last seven years, divided into 14 semi-annual installments.
The procurement of Rafale aircraft is part of Serbia’s broader strategy to modernize its Armed Forces and enhance the capacities of the Air Force and anti-aircraft defense. According to the law’s explanation, acquiring these aircraft will significantly improve Serbia’s ability to control and protect its airspace, project military power, and deter potential threats.
The contract also includes training for pilots and technical personnel, as well as the procurement of additional equipment, with the Ministry of Defense overseeing the implementation. Furthermore, the arrangement opens opportunities for industrial cooperation with French companies in advanced technologies, including the production of aerospace components and systems.
According to Serbia’s 2025 Budget Law, borrowing up to EUR 2.3 billion is planned for projects of national importance, which includes this credit arrangement.
