On Monday, the United States announced a second $2 billion Foreign Military Financing direct loan agreement with Poland, aiming to further strengthen NATO’s Eastern Flank. Poland, a strong US ally, is carrying out a major military modernisation programme, which includes acquiring US defence equipment such as F-35 aircraft, Patriot missile systems, and Abrams’s main battle tanks.
Poland is a leading NATO member, spending 4% of its GDP on defence, the highest in the Alliance. The country hosts thousands of US and Allied forces, including the US V Corps Headquarters (Forward) in Poznan. Consequently, Poland played a crucial role in providing Western support to Ukraine.
The US government will provide up to $60 million in Foreign Military Financing to subsidise the interest rate cost of this loan, underlining the urgency of Poland’s defence modernisation. This support will help speed up the procurement of US defence equipment and services, a crucial step in ensuring Poland’s security.
Foreign Military Financing direct loans are a security cooperation tool reserved for some of our most crucial security cooperation partners. Loan proceeds will further advance Poland’s military modernisation effort across a wide range of capabilities, substantially strengthening the defence and deterrence of NATO’s Eastern Flank.
