Peru’s defense minister and foreign minister resigned from their posts on Wednesday, amid growing speculation over the status of a multi-billion-dollar purchase of F-16 aircraft from the United States.

Interim President Jose Balcazar, who leaves office in July, sought to clarify that he had not opposed the deal, but rather postponed any payments until the next administration takes office following the presidential election.

Defense Minister Carlos Diaz and Foreign Minister Hugo de Zela submitted their resignations earlier on Wednesday, citing their opposition to Balcazar’s handling of the deal negotiations.

“A strategic decision has been taken in the area of national security with which I have a fundamental disagreement,” Diaz said in his resignation letter.

Balcazar, in a televised statement, said his earlier remarks suggesting the purchase had been delayed were misinterpreted, indicating that the agreement had moved forward while the financial commitment would fall to the incoming government.

Peru has spent years negotiating with different firms to modernize its aging fighter jet fleet of Mirage 2000 and MiG?29 aircraft acquired in the 1980s and 1990s. Peru is looking to eventually acquire a total of 24 jets, but a first deal would be for 12.

Among the bidders is US firm Lockheed Martin. The U.S. State Department approved the potential sale of F?16 aircraft and related support to Peru in September, with Lockheed as the principal contractor, alongside General Electric Aerospace and RTX Corp, in a deal valued at an estimated $3.42 billion, the Pentagon said at the time. They are competing with firms from Sweden and France to sell fighter jets to Peru, according to the government.

Balcazar canceled a signing ceremony last Friday for the acquisition of Lockheed Martin F?16 jets just hours before it was scheduled to take place, citing concerns over tying the next government to a major defense commitment, a government official told Reuters. In an apparent response to the decision, US ambassador to Peru Bernie Navarro said within hours that Washington would use “all available tools” against parties that negotiate “in bad faith” with the United States, in a post on X.

The US embassy in Lima did not respond to a Reuters request for comment. “We remain firm in respecting all agreements that may have been reached at the level of the armed forces, or in this case with the relevant ministry of the air force, to carry out the corresponding negotiations,” Balcazar said. Reuters