Poland secures USD 3 billion loan for military expansion, enhancing defence cooperation

By Defence Industry Europe

Polish Ministry of National Defence announced the signing of a new USD 3.08 billion loan agreement with the United States as part of the Foreign Military Financing (FMF) programme. This marks Poland's third such loan from the US, bringing the total amount of US-backed loans to $7.08 billion. These loans are part of a broader initiative to enhance military cooperation between the two nations, with the latest funds earmarked for the purchase of 96 Boeing AH-64E Apache helicopters.

 

This new loan continues Poland’s trend of receiving US financial assistance, aimed at bolstering its military capabilities, especially as it plays a key role in regional security and supports Ukraine in its ongoing conflict with Russia. The helicopters will play a critical role in modernising Poland’s military, allowing it to strengthen its defence posture against emerging threats.

Polish authorities have emphasised that these US loans come with favourable financial conditions, a crucial aspect for Warsaw’s long-term military procurement plans. Importantly, 51% of the loan must be spent on American military equipment or services, underscoring the deepening defence ties between the two allies. The loan is expected to accelerate Poland’s military modernisation, including the expansion of its fleet of advanced combat helicopters.

 

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The United States remains one of Poland’s main suppliers of military hardware, with recent purchases including Patriot PAC-3+ air defence systems, FGM-148 Javelin anti-tank missiles, Lockheed Martin F-35A Lightning II multi-role fighter jets, M142 HIMARS rocket artillery systems, and M1A2 SEPv3 Abrams tanks. The latest contract for the AH-64E Apaches, signed in August 2024, further solidifies this relationship.

Looking ahead, Poland is expected to continue expanding its military capabilities through additional agreements. These may include the acquisition of General Atomics MQ-9B SkyGuardian combat drones, more weapons packages for its fighter jets such as AIM-9X Sidewinder and AGM-88G AARGM-ER missiles, and upgrades for its F-16C/D fighter jets, pending approval from the US State Department.

 

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