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US To Provide $2B Direct Loan for Poland’s Defense Modernization Program

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The United States has announced a $2 billion direct loan agreement to advance Poland’s defense modernization efforts.

The Foreign Military Financing loan will support the country’s upgrade plans for its military forces, according to the Department of State.

The deal will also bolster NATO’s defense and deterrence in Europe’s eastern flank, the department said, adding that FMF loans are reserved for the U.S.’ “most important security cooperation partners.”

Following the signing of the agreement, the State Department highlighted Poland’s important role in facilitating the delivery of international aid to Ukraine.

The European country’s increasing defense investments demonstrate its strong commitment to beefing up regional security, it stressed.

The nation’s defense modernization plans would expand the Polish Armed Forces and support more active participation in NATO missions across Europe.

The U.S. government will provide $60 million for the cost of the FMF loan, which would fund Poland’s acquisition of defense articles and services from the United States, State said.

According to Reuters, NATO estimates that Poland will spend 3.9 percent of the country’s gross domestic product for 2023 to achieve its military objectives.

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