Peru’s foreign and defence ministers resigned Wednesday in protest over the interim president’s decision to stall a $3.5 billion deal for the purchase of 24 US F-16 fighter jets.
The ministers said that the deal had already been signed and that to cast doubt on it now jeopardised Peru’s reputation as a trading partner.
Despite the president’s declared wish to suspend the purchase, the Ministry of Economy announced late Wednesday that it had transferred $462 million as part of an initial payment for the contract with aircraft manufacturer Lockheed Martin.
The confusion over the purchase and the abrupt resignations deepened instability gripping the South American country after a recent election to choose the country’s ninth president in a decade descended into chaos.
No candidate secured an outright majority, necessitating a runoff election on 7 June.
Interim President Jose Maria Balcazar said on Tuesday that he would leave it up to the winner to finalise the jet deal.
The US ambassador to Peru, businessman Bernardo Navarro, on Friday issued a warning widely believed to relate to the agreement.
“If you engage in bad faith dealings with the US and undermine its interests, I assure you, on behalf of @POTUS Trump and his administration, I will utilise every available tool to safeguard and promote the prosperity and security of the United States and our region,” Navarro wrote on X.
He later told Exitosa radio station that the deal is for two squadrons of 12 F-16 fighter jets, with the first 12 to start arriving in 2029.
On Wednesday, Balcazar went on state TV to assure Peruvians that he was “not seeking confrontation with the United States".
He said he halted the defence deal to ensure that public funds were used appropriately and reasonably, in accordance with the significant social gaps we have to address in the country.
Foreign Minister Hugo de Zela said the decision endangers our country and undermines its credibility.
He claimed the contracts for the F-16s were signed on Monday after being approved by the National Defence Council and that an initial payment was due on Wednesday.
Defence Minister Carlos Diaz said the purchase of jets was not political but for the security and defence of the nation.
On Tuesday, Balcazar, who took over from a previous interim leader who faced impeachment, denied that the sale of the jets had already gone through.
His term ends on 28 July.
Congress President Fernando Rospigliosi urged Balcazar to honor the deal with the United States to avoid a ‘political, legal and geopolitical problem'.
Ultraconservative congressman Jorge Montoya proposed impeaching Balcazar, making him the fifth president in 10 years.
In October 2024, Peru announced that it would renew its ageing air defence fleet with the purchase of state-of-the-art fighter jets.
A state evaluation committee last year chose the F-16s over rival bids from France’s Rafale and Sweden’s Gripens, citing technical and geopolitical criteria.
Peru currently has 12 Mirage 2000 aircraft, according to defence publications.
Its combat fleet also includes Russian MiG-29s and Belarusian Sukhoi Su-27s, most of which are inoperative or in reserve.
The deal with the United States has become swept up in a presidential election marred by logistical problems, unsubstantiated fraud allegations and delays to the ballot count.
Ten days after Peruvians voted in the first round, it is still not known who will face off against conservative frontrunner Keiko Fujimori in June’s second round.
Ultraconservative former Lima mayor Rafael Lopez Aliaga is locked in a tight race with leftist ex-minister Roberto Sanchez for the second runoff spot.
Lopez Aliaga has alleged election fraud and called for the vote to be annulled.
The final results have been delayed by legal challenges.
Calls for a security crackdown to end an extortion epidemic and related wave of contract killings dominated the election.
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