EXHIBIT 12

                       LORAL SPACE & COMMUNICATIONS LTD.

          COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
                                 (IN THOUSANDS)
                                  (UNAUDITED)



                                                              THREE MONTHS ENDED
                                                                   MARCH 31,
                                                              -------------------
                                                                2002       2001
                                                              --------   --------
                                                                   
Income (loss) before income taxes, equity in net loss of
  affiliates, minority interest and cumulative effect of
  change in accounting principle............................  $  1,544   $(38,100)
Plus fixed charges:
  Interest expense..........................................    26,006     55,110
  Interest component of rent expense(1).....................     3,722      4,106
Less: capitalized interest..................................     7,436      5,417
                                                              --------   --------
Earnings available to cover fixed charges...................  $ 23,836   $ 15,699
                                                              ========   ========
Fixed charges(2)............................................  $(41,691)  $(75,339)
                                                              ========   ========
Deficiency of earnings to cover fixed charges...............  $(17,855)  $(59,640)
                                                              ========   ========


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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.