Wed Sep 25 06:16:44 UTC 2024: ## US to Lend Romania $920 Million for Defense Modernization

**BUCHAREST** – The United States will provide Romania with a $920 million direct loan to support its defense modernization program, the Romanian government announced on Wednesday. This move comes as Romania seeks to bolster its defense capabilities in the wake of Russia’s invasion of Ukraine.

Romania, a member of NATO and the European Union, aims to allocate 2.5% of its GDP to defense spending. The country shares a significant border with Ukraine, and has been impacted by the conflict, with Russian drone fragments entering its territory and frequent attacks on Ukrainian Danube River ports located near the Romanian border.

The $920 million loan, granted through the US Foreign Military Sales (FMS) mechanism, will be disbursed directly to the Romanian Ministry of Defense ($700 million) and to state-owned ROMARM ($220 million). ROMARM manages 15 companies involved in weapons and ammunition production, ranging from gunpowder to guided missiles.

The loan agreement features a 12-year repayment plan. In August, Romania approved access to a total of $4 billion in direct loan agreements through FMS, alongside up to $8 billion from the financial markets with US government guarantees.

This loan signifies a significant step in Romania’s efforts to strengthen its defense posture, demonstrating the US commitment to supporting its allies in the face of growing security challenges in the region.

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