Romania secures £690 million US loan to boost defence production
Romania and the USA signed a direct loan agreement on Wednesday for £690 million as part of the Military Financing Fund (MFM) programme. These funds will be allocated for defence spending, including the purchase of equipment and the production of Abrams tank shells.
- 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 - said Prime Minister Marcel Ciolacu.
The Prime Minister granted the loan, which was reserved for selected U.S. allies, calling it a confirmation of "trust and status" toward Romania. Romania's plans include seeking £1.5 billion in such financing.
Romanian Finance Minister Marcel Bolos and Michael Miller, Director of the Defence Security Cooperation Agency (DCSA), signed the agreement. The Ministers of Defence and Economy and U.S. Ambassador Kathleen Kavalec also attended the meeting.
Romania invests in defence
The Romania Journal portal cited the Minister of Economy Radu Oprea earlier as saying that £165 million of the obtained funds would be allocated for a production centre for 120 and 155 millimetre ammunition, making Romania the only manufacturer of Abrams tank shells in Europe.
"The FMF loan underscores the strategic partnership between the United States and Romania, a strong NATO Ally along its eastern flank and an important force for political and economic stability in Europe," said the U.S. Embassy statement.
"Direct loans represent a security cooperation tool reserved for only our most important security cooperation partners," said Michael Miller.
