Serbia Borrows $2.2B to Purchase Rafale Fighter Jets

Serbia is borrowing $2.2 billion from French banks to purchase Rafale fighter jets.

The Serbian parliament on Monday voted to authorize a €1.9 billion (about $2.2 billion) loan from several French banks. The funds will be used to finance the purchase of 12 Rafale fighter jets, The Defense Post reported.

In August 2024, Belgrade agreed to buy 12 Rafale aircraft – nine single-seaters and three two-seaters – for a total of €2.7 billion ($3.1 billion).

They are to replace the outdated fleet of Soviet MiG fighters. According to the adopted legislation, Serbia has already made an advance payment of €823.5 million (approximately $952 million).

The country plans to borrow the remaining amount from a group of French banks and credit institutions.

The document contains a list of financial institutions, in particular: Bred Banque Populaire (€163.3 million), Crédit Agricole (€345.87 million), Crédit Industriel et Commercial (€345.87 million), Crédit Lyonnais (€163.3 million), Société Générale (€422.73 million) and Natixis (€480.37 million).

Serbian Finance Minister Sinisa Mali noted that this deal is part of a large-scale program to modernize the country’s armed forces. According to him, this is the largest investment in the history of the Serbian army.

“Our goal is to completely improve and modernize the air force and military forces as part of a broader rearmament effort,” he said in a speech to the parliament.

The minister also said that the first Rafale fighter jet is expected in early 2028. Further deliveries will take place on a monthly basis.

“One aircraft will arrive every month until the full delivery is completed,” the minister added.

The final agreement on the Rafale purchase was reached during French President Emmanuel Macron’s official visit to Belgrade in August 2024. The deal also signals the deepening of military-technical cooperation between France and Serbia amid Belgrade’s increasingly active revision of its defense priorities.