The United States is announcing a second $2 billion Foreign Military Financing direct loan agreement with Poland today.
Poland is a stalwart U.S. Ally, and this deal will further strengthen NATO's Eastern Flank. Poland is undertaking a major military modernization program, including purchases of U.S. defense equipment such as F-35 aircraft, Patriot missile systems, and Abrams main battle tanks. Poland is a leader in NATO, currently spending four percent of GDP on defense, the highest in the Alliance. Poland hosts thousands of U.S. and Allied forces, including U.S. V Corps Headquarters (Forward) in Poznan.
The U.S. government is providing up to $60 million in Foreign Military Financing to subsidize the interest rate cost of this loan, which will help accelerate Poland's defense modernization by supporting urgent procurements of defense articles and services from the United States.
Foreign Military Financing direct loans are a security cooperation tool reserved for some of our most important security cooperation partners. Loan proceeds will further advance Poland's military modernization effort across a wide range of capabilities, substantially contributing to strengthening the defense and deterrence of NATO's Eastern Flank.
