BRASILIA, Brazil, Aug. 25 (UPI) -- Brazilian and Swedish officials are signing the financial contract for the procurement of Gripen NG fighters by the Brazilian Air Force.

The signing by representatives of the Brazilian Air Force Command and the General Counsel of the National Treasury and the Swedish Export Credit Corporation is taking place in London following negotiations setting the interest rate on borrowed funds for the sale of the aircraft.


"The agreed interest rates are 2.19 percent per annum, allowing the Brazilian government savings of up to 600 million reals (about $170 million), the Brazilian Ministry of Defense said.

"The Brazilian Federal Senate approved the project and the Ministry of Finance published in the Official Gazette this Friday (Aug. 21) the authorization for external credit transaction worth up to US$ 245.3 million dollars."

The ministry said the credit will cover 100 percent of the commercial contract.

Brazil is buying 36 Gripen NG fighters from Saab . The first will be delivered in 2019, the last in 2024. Under the contract, 15 of the planes will be manufactured in Brazil, which will result in the transfer of technology to Brazil.

Eight of the 15 Brazilian-made jets will be in a two-seat configuration created for Brazil.

The signing could take place as early as this week.