Poland has borrowed $2 billion from the US to cover the costs of its upcoming spending on more modern defense equipment.
Issued through the Foreign Military Financing program, the money is required to be used in procuring US-made weapons only.
According to the US State Department, Washington loaned the money because it considers Warsaw a “stalwart ally” for which security is vital to the collective defense of NATO’s eastern flank.
“In addition to its central support role in facilitating international assistance to neighboring Ukraine, Poland has demonstrated its ironclad commitment to strengthening regional security through its robust investments in defense spending,” it noted.
The US has included an additional subsidy of $60 million to guarantee good terms for the European nation.
Other details about the loan, such as the interest rate and payment schedule, have yet to be made public.
The state department said its loan is a security cooperation tool reserved for some of its “most important” partners.
It is expected to further advance Poland’s military modernization effort, while contributing to strengthening NATO’s defense and deterrence.
Warsaw has ramped up its defense spending amid Russia’s invasion of Ukraine and increasing security tensions in Europe.
Earlier this month, Polish President Andrzej Duda announced that his country will spend more than four percent of its gross domestic product on defense next year to bolster its military capabilities.
It also acquired hundreds of K239 Chunmoo multiple launch rocket systems from South Korea to improve the country’s protection against evolving threats.
“Poland plans to significantly expand the Polish Armed Forces; has divested its legacy Russian origin military equipment in favor of an ambitious multi-year, multi-billion-dollar defense modernization program … and actively participates in NATO missions across the region,” the state department wrote.
Support for Ukraine
Amid its ongoing defense spending, Poland has been a staunch supporter of Ukraine, providing large numbers of defense items for it to combat Russian forces.
The Ukrainian and US ally also said it had already transferred some of its promised MiG-29 fighter jets to Kyiv to improve its air defense.