The U.S. will give Poland another $2 billion loan to buy American weapons, the second time in less than a year that a State Department loan program has been used to aid the Polish armed forces’ modernization.
Foreign Military Financing direct loans are rare and reserved for the United States’ most important security cooperation partners, said a Monday statement from the State Department.
Before September 2023, when Poland’s first such $2 billion loan was approved, the last time the State Department had done so was in 2017, when it awarded a Foreign Military Financing loan to Iraq, according to reporting by Defense One.
The U.S. has agreed to provide up to $60 million in foreign military financing to subsidize the interest cost of the latest loan, which will help accelerate the procurement process, the State Department said.
The new loan will be used to buy American air and missile defense systems, Poland’s Defense Ministry said in a statement last week.
Some 10,000 American troops are serving in Poland, which has taken on growing significance as NATO counters Russian aggression in neighboring Ukraine. Last year, the U.S. Army established a garrison in Poznan, giving Poland its first permanent American military outpost.
Polish leaders have branded Russia an existential threat and in recent years have approved the spending of billions of dollars to boost the country’s military capabilities.
The modernization has included purchases of American F-35 airplanes, Patriot missile systems and Abrams main battle tanks.
“Poland is a stalwart U.S. ally, and this deal will further strengthen NATO’s eastern flank,” State Department spokesman Matthew Miller said Monday.
The country currently spends 4% of its gross domestic product on defense, the highest percentage of any NATO member.
“The United States remains our main foreign partner in the modernization of the Polish armed forces,” the Defense Ministry statement said.