(Reuters) – The United States has signed a $2 billion direct loan agreement to support Poland’s defense modernization program, the State Department said on Monday.
THE TAKE
The foreign military financing deal advances the two countries’ defense cooperation as Poland seeks to boost its armed forces following Russia’s invasion of Ukraine.
KEY QUOTE
“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,” the State Department said in a statement on Monday.
CONTEXT
Poland is a top U.S. ally and has topped NATO’s spending charts this year. The military alliance has forecast Poland pouring 3.9% of gross domestic product into military goals, almost twice NATO’s current 2% target.
BY THE NUMBERS
The U.S. will provide $60 million for the cost of the $2 billion loan, which will be used to help pay for Poland’s defense modernization program with weapons purchases from the U.S., the State Department said.
(Reporting by Brendan O’Brien in Chicago; Editing by Caitlin Webber and Rami Ayyub)
