US Offers Poland USD 2 Bln Loan For Financing Military Modernization

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, July 8 (KUNA) -- The United States is offering Poland a second USD 2 billion foreign direct military finance loan for overhauling its military, the US State Department stated Monday.
"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 US," the State Department Spokesman Matthew Miller said in press statement.
"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," he argued.
He also unveiled that the US government is providing up to USD 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.
He pointed out that the Foreign Military Financing direct loans are a security cooperation tool reserved for some US 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," Miller concluded. (end)
asj

MENAFN08072024000071011013ID1108419934