Romania Secures First $920 Million Loan from the US to Strengthen Defence Capabilities

Romania has agreed with the United States on a $920 million loan from the Defence Financing Fund for defence needs, Digi24 reports.

At the signing ceremony, Romanian Prime Minister Marcel Ciolacu said that Romania's access to $920 million in US funding is a ‘strong argument for trust’ in relations between the two countries. This fund is a US programme that provides grants and loans to partner countries for the purchase of US-made weapons and related services and financing military training. 

Through this mechanism, Romania will be able to obtain funds on more favourable terms than those on which the state most often borrows.

‘We will develop Romania's defence capabilities, create jobs for Romanians and once again play a prominent role in arms production at the regional level. At the same time, we are gaining access to top-level weapons that will help us, together with the United States and other NATO allies, strengthen collective defence and deter threats to Romania and other countries on the eastern flank,’ Ciolacu said, adding that the agreed amount is only the first stage, and that Romania has project proposals worth up to €2 billion through the same mechanism.

Earlier in August, the US approved the sale of $180 million worth of AMRAAM missiles to Romania.