Defense Secretary Gilberto Teodoro recently gave an Interview to the Press and talked about the Multi-Role Fighter (MRF) Program of the Philippine Air Force (PAF), and here are the Highlights of that Interview:
He said that they are ready to make a Decision on the MRF, but are still discussing on how to fund it.
The Department of Finance (DOF) has agreed to use a "Creative" Financing Program to fund the acquisition.
They are planning to fund the Aircraft acquisition thru a Loan which will be paid by the Government annually.
A Special Purpose Fund or Revenue from Exploration Activities might be used to sustain the Payments.
The DOF is considering using the Export Credit System from Sweden to acquire the Aircraft.
Here are some direct Quotes from Secretary Teodoro during the Interview: "If it was up to me, I’m ready to make a Decision. But the Source of Funding, that’s what we’re discussing right now. This will be paid by the Government annually, the Government needs to allocate a Consistent Source of Repayment."
Here is the Link to the Article from the “Business World” Website: https://www.bworldonline.com/the-nation/2025/07/01/682699/philippines-ready-to-pick-fighter-jets-but-funding-hurdles-remain-dnd/
MY THOUGHTS: Although Teodoro still didn’t say which MRF they are getting, it seems he has unintentionally admitted that they are planning to get the JAS-39 Gripen Aircraft for the PAF’s MRF Program when he revealed that the Government is seeking Loans from Sweden as the Aircraft is made there.
So this is just another strong Hint that the Philippine Government intends to sign the Contract to get the Gripens once it irons out the Issues about financing it. However, nothing is more or less Final until a Contract is signed, but as of now, the Gripen is heavily favored to be the PAF’s MRF.
SOURCE: Philippines ready to pick Fighter Jets but Funding Hurdles remain — DND {Archived Link}
