Romania secures $920 million US loan for defense upgrades
Romania and the USA signed a direct loan agreement on Wednesday for $920 million as part of the Military Financing Fund (FMF) program. These funds will be allocated for defense spending, including the purchase of equipment and the production of Abrams tank shells.
6:17 AM EDT, September 26, 2024
- At the national level, we will focus in the coming period on developing new production capacities in Romania, creating jobs for Romanians and becoming relevant again in the production of military equipment at the regional level - said Prime Minister Marcel Ciolacu.
The Prime Minister granted the loan, which was reserved for selected U.S. allies, calling it a confirmation of "trust and status" toward Romania. Romania's plans include seeking a total of $2 billion in such financing.
The agreement was signed by Romanian Finance Minister Marcel Bolos and Michael Miller, Director of the Defense Security Cooperation Agency (DSCA). The Ministers of Defense and Economy and U.S. Ambassador Kathleen Kavalec also attended the meeting.
Romania invests in defense
Cited by the Romania Journal portal, the Minister of Economy Radu Oprea said earlier that $220 million of the obtained funds would be allocated for a production center for 120- and 155-millimeter ammunition, making Romania the only manufacturer of Abrams tank shells in Europe.
"The FMF loan underscores the strategic partnership between the United States and Romania, a strong NATO Ally along its eastern flank and an important force for political and economic stability in Europe" said the U.S. Embassy statement.
"Direct loans represent a security cooperation tool reserved for only our most important security cooperation partners," said Michael Miller.
