The U.S. Department of State has announced a $920 million direct loan to Romania to help accelerate its military modernization efforts.
The deal, granted under the Foreign Military Financing program, includes a $60 million grant from the federal government to cover fees and guarantee the loan.
According to the State Department, the FMF direct loan will allow the purchase of several defense equipment. In November, Romania expressed interest in acquiring up to 54 M1A2 SEPv3 Abrams main battle tanks.
Romania’s military modernization effort also includes upgrading air defense capabilities. Earlier in September, the U.S. approved Bucharest’s request to acquire 32 F-35A Lightning II Joint Strike Fighter jets from Lockheed Martin, enabling greater interoperability between Romania and other NATO members.
Matthew Miller, spokesperson for the Department of State, said the FMF deal is expected to strengthen NATO’s operations in its eastern flank, noting Bucharest’s contributions within the military alliance.
“Romania is a leader in NATO, working closely with allies to advance Black Sea security and providing critical assistance to Ukraine, including the transfer of a Patriot strategic air defense system and training Ukrainian F-16 pilots,” the official said in a statement.