##### 



Exhibit 12

LORAL SPACE & COMMUNICATIONS
LTD.

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER
FIXED CHARGES

(in thousands)


(unaudited)


|                                                                                                                                                         |                                       |                    |         |        |  |   |         |        | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ------------------ | ------- | ------ |  | - | ------- | ------ | 
|                                                                                                                                                         |                                       |                   
|                                                                                                                                                         |                                       | Three Months Ended
|                                                                                                                                                         |                                       | March 31,         
|                                                                                                                                                         |                                       |                   
|                                                                                                                                                         |                                       | 2003               |         | 2002  
|                                                                                                                                                         |                                       |                    |         |       
|(Loss) income before income taxes, equity in net
    losses of affiliates, minority interest and cumulative effect of
    change in accounting principle |                                       | $                  | (37,650 | )      |  | $ | 1,544   |       
|Plus fixed charges:                                                                                                                                      |                                       |                    |         |        |  |   |         |       
|                                                                                                                                                         | Interest expense                      |                    |         | 26,182 |  |   |         | 26,006 | 
|                                                                                                                                                         | Interest component of rent expense(1) |                    |         | 2,319  |  |   |         | 3,722  | 
|Less: capitalized interest                                                                                                                               |                                       |                    | (9,378  | )      |  |   | (7,436  | )     
|                                                                                                                                                         |                                       |                    |         |        |  |   |         |       
|Earnings available to cover fixed charges                                                                                                                |                                       | $                  | (18,527 | )      |  | $ | 23,836  |       
|                                                                                                                                                         |                                       |                    |         |        |  |   |         |       
|Fixed charges(2)                                                                                                                                         |                                       | $                  | (31,862 | )      |  | $ | (41,691 | )     
|                                                                                                                                                         |                                       |                    |         |        |  |   |         |       
|Deficiency of earnings to cover fixed charges                                                                                                            |                                       | $                  | (50,389 | )      |  | $ | (17,855 | )     
|                                                                                                                                                         |                                       |                    |         |        |  |   |         |       



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|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest component of rent expense is deemed
    to be approximately 25% of total rent expense.                                                                                                                          
|   
|(2) | Preferred dividends have not been adjusted for
    income taxes, due to the composition of the taxing jurisdictions
    underlying the Companys operations and the resulting
    impact on the Companys effective tax rate.