Czechia has officially acknowledged that it lacks the funds to purchase new Leopard 2A8 tanks and is now considering applying for a loan through the EU's Security Action For Europe (SAFE) program. The plan covers the acquisition of 44 tanks and 17 specialized support vehicles, with an option for an additional 14 tanks and two vehicles.
The decision to pursue a loan appears reasonable, given that even this relatively modest order is estimated to cost around 52 billion Czech crowns ($2.5 billion). That's a substantial investment even for wealthier NATO members.
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The agreement is further strengthened by a joint procurement framework with Germany, which allows for a larger, potentially cheaper batch order, while also exempting Czechia from paying VAT, making the deal even more interesting and cheaper for Prague. Deliveries are expected to be completed by 2030.
As a quick reminder: the SAFE initiative allows EU countries to obtain loans to purchase military equipment from European and Ukrainian defense manufacturers. The total loan pool can reach up to €150 billion.
Under SAFE, countries receive favorable terms — interest rates of around 3.3% per year, with a 10-year grace period on repaying the principal. Loan repayment can be spread out over a maximum of 45 years.
Earlier, Defense Express reported on Ukraine's planned use of SAFE loans to strengthen its own defense industry, mainly focusing on domestic UAVs, missiles, and munitions.
Meanwhile, Czechia is actively working on several procurement programs, including Swedish short-range air defense systems and command vehicles based on the TITUS armored platform. At the same time, the country faces setbacks — such as the recent scandal around the CAESAR 8x8 howitzers.
Read more: Czechia Threatens to Cancel CAESAR 8х8 Contract After First Delivered Units Fail Range Tests
