Romania and the United States signed Wednesday, September 25, a direct loan agreement worth USD 920 million through the Foreign Military Financing (FMF). Romania can access this funding to strengthen its defense capacity by providing modern equipment to the Army or developing the local defense industry, the government said.

Prime minister Marcel Ciolacu participated in the signing ceremony held at the Victoria Palace in Bucharest alongside the US Ambassador to Romania, Kathleen Kavalec. The document was signed on behalf of the Romanian government by the minister of finance, Marcel Boloș, and, on the US side, by the director of the US Defense Security Cooperation Agency (DSCA), Michael Miller.

According to the Romanian government, this funding is "a major support" for the country's military modernization effort across a wide range of capabilities, which will enhance Romania's ability to deter threats, defend its sovereignty, and contribute to NATO's collective security.

"At the national level, we will focus in the coming period on developing new production capacities in Romania, creating jobs for Romanians, and becoming relevant again in the production of military equipment at the regional level. At the same time, we will have access to the highest level of military technology, which will help us work together with the US and our NATO allies to strengthen collective defense and deter threats to Romania and the countries on the Eastern flank of the Alliance," prime minister Ciolacu said.

The United States Embassy to Bucharest noted that Romania is a valued US partner and Ally, and this significant loan agreement will further strengthen NATO's Eastern Flank. Romania is undertaking a major military modernization program, including purchases of US defense equipment such as Abrams main battle tanks and coproduction of ammunition.

"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," reads the press statement of department spokesperson Matthew Miller.

"The US government is providing USD 60 million in FMF grant funding for the cost of this loan, which will help accelerate Romania's defense modernization by supporting urgent procurements of defense articles and services from the United States," the same source said.

US ambassador Kathleen Kavalec said at the signing ceremony that Romania is a supplier - and not just a consumer - of security within the NATO alliance.

irina.marica@romania-insider.com

(Photo source: Facebook/U.S. Embassy Bucharest)