Romania secures USD 920 million U.S. loan to modernise its armed forces

By Defence Industry Europe

On 25 September, the United States announced the approval of a USD 920 million Foreign Military Financing (FMF) direct loan to Romania, marking a significant step in supporting the country's military modernisation efforts. This move strengthens NATO’s Eastern Flank and highlights the strategic partnership between the two nations.

 

According to a statement from the U.S. Department of State, the loan will be used to purchase advanced U.S. defence equipment, including 54 M1A2 SEPv3 Abrams tanks and the coproduction of ammunition. Romania, a key U.S. ally in the region, is undergoing a major military upgrade aimed at enhancing its defence capabilities amidst growing regional tensions.

The U.S. government is also providing USD 60 million in grant funding to cover the loan’s service costs, further accelerating Romania’s procurement of defence articles and services. This loan is part of a broader effort to support Romania’s ongoing military modernisation, which includes the acquisition of U.S. air defence systems, armoured vehicles, and advanced combat aircraft.

Romania has emerged as a leader within NATO, playing a crucial role in regional security, particularly around the Black Sea. The country has provided critical assistance to Ukraine, including the transfer of a Patriot air defence system and training for Ukrainian F-16 pilots. Romania’s commitment to regional stability aligns with its purchase of American military equipment, such as Patriot PAC-3 air defence systems, HIMARS rocket artillery systems, and other strategic assets.

 

Source: U.S. Department of State.

 

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