US to Loan Poland $2 Billion for Purchase of Air Defense Systems.

The Polish Ministry of Defense announced that the United States will provide Poland with a $2 billion (8.1 billion zlotys) loan to finance the acquisition of American air and missile defense systems. This announcement was made on July 1, 2024.
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U.S. Army Patriot Missile Systems. (Picture source: US DoD)

This loan marks the second of its kind under the Foreign Military Financing (FMF) program, following a similar agreement last September. The ministry described this loan as "an expression of the continuously developing strategic relationship between Poland and the United States."

These loans are granted "only to selected US allies with whom the United States maintains close defense cooperation," according to the ministry, which also highlighted the favorable terms of the agreement, although specific details were not disclosed.

The acquisition of these air and missile defense systems is a priority for the Polish armed forces in light of current threats, the ministry added.

In February, Poland signed a $2.5 billion contract with the United States for an advanced air defense system. Additionally, the US State Department approved the sale of four radar reconnaissance airships to Poland for $1.2 billion, capable of detecting airborne targets.

These purchases are part of Poland's significant defense procurement efforts, primarily from the United States and South Korea, following Russia's invasion of Ukraine. Poland has been NATO’s highest relative spender on defense, allocating around 4% of its GDP over the past two years.

The Polish Embassy in the United States tweeted on July 1, 2024, "Poland and the United States have signed a direct loan agreement under the Foreign Military Financing program for $2 billion. The funds will be used to further strengthen Poland's defense capabilities through the purchase of air and missile defense systems from the American side."

The Polish Ministry of National Defense also tweeted, "Poland and the United States have signed a direct loan agreement under the Foreign Military Financing program for $2 billion. The funds obtained will be used to further strengthen Poland's defense potential through the purchase of air and missile defense capabilities from the American side."

"The United States remains our main foreign partner in the modernization of the Polish armed forces," stated the Ministry of Defense. Washington has not yet commented on this latest Foreign Military Financing agreement with Poland.