The Weird Way Qatar Is Trying to Find the Money to Buy a Bunch of Eurofighters
Economics, Middle East
Might it work?
On Sep. 17, 2017 Qatar and U.K. defense ministers signed the Letter of Intent (LOI) over Qatar’s purchase of 24 Eurofighter Typhoons.
Qatar was supposed to make the first payment for its order of 24 Eurofighter Typhoon aircraft in order to cement the deal but the Gulf state has failed to do so.
News report from The National says Qatar is trying to raise money from the capital markets to fund the purchase and this has delayed the process and caught the British off guard.
“Initially the payment was expected around now but (has now been pushed) back to the third quarter on financial records, perhaps late August, so the deal can go through,” a source close to the deal said. “We don’t know why they need to do this (get the loan), it is their internal process that we are not party to, but we are still confident of payment and expect the deal to go through.”
In December 2018 BAE said the deal was subject to “financial conditions and receipt by the company of first payment, which are expected to be fulfilled no later than mid-2018”.
“The Typhoons will boost Qatar’s mission to tackle the challenges we both share in the Middle East,” a British government spokesman said. “This is an ongoing commercial matter between BAE Systems and the Qatari government, who continue to progress this deal, which will support thousands of jobs and inject billions into our economy.”
Source : Link to Author