LIMA, PERU — Interim President José María Balcázar announced on Wednesday that he would defer a decision on a $3.5 billion deal to purchase 24 U.S. F-16 fighter jets until his successor takes office after Peru's June 7 presidential runoff. Defense Minister Carlos Díaz and Foreign Minister Hugo de Zela resigned the same day.

"For us to commit such a large sum of money to the incoming government would be a poor practice for a transitional government," Balcázar said. Both ministers said at a news conference that they had unsuccessfully tried to persuade Balcázar to follow through on the deal.

Díaz's resignation letter said that postponing the purchase could compromise Peru's interests. Díaz said officials from the Ministry of Defense signed the contract on Monday for the purchase of the aircraft as stipulated under the deal, even without Balcázar's approval. He noted that specific details of the agreement remain undisclosed because they are classified.

De Zela accused Balcázar of misleading the public about the contract. De Zela made the accusation in remarks to a local radio station.

U.S. Ambassador Bernie Navarro addressed the deferral in written remarks. "If you deal with the U.S. in bad faith and undermine U.S. interests, rest assured, I, on behalf of [President] Trump and his administration, will use every available tool to protect and promote the prosperity and security of the United States and our region," Navarro wrote. He also warned about the commercial implications of a postponement. "Every delay results in significant costs. The same package cannot be available in a couple of months, or even weeks," he wrote.

In 2024, the government of then-President Dina Boluarte announced that Peru would allocate $3.5 billion to purchase 24 fighter jets through domestic borrowing of $2 billion in 2025 and $1.5 billion in 2026. Among the companies that submitted bids for the contract were Lockheed Martin, Saab and Dassault Aviation.

Peru is holding a presidential runoff on June 7 as officials continue counting votes from the first round held on April 12, including tally sheets from remote areas and consulates abroad. The borrowing was structured across two years to finance the purchase, with $2 billion planned for 2025 and $1.5 billion for 2026.