Romania secures CAD 1.2bn loan for defense, aims at regional leadership
On Wednesday, Romania and the USA signed a direct loan agreement for CAD 1.2 billion as part of the Military Financing Fund (MFM) program. These funds will be allocated for defence spending, including equipment purchase and production of Abrams tank shells.
Prime Minister Marcel Ciolacu said, "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."
The Prime Minister granted the loan, which was reserved for selected U.S. allies, as a confirmation of "trust and status" toward Romania. Romania's plans include seeking a total of CAD 2.7 billion in such financing.
The Romanian Finance Minister Marcel Bolos and Michael Miller, Director of the Defence Security Cooperation Agency (DCSA), signed the agreement. The meeting was also attended by the Ministers of Defense and Economy and U.S. Ambassador Kathleen Kavalec.
Romania invests in defence
Cited by the Romania Journal portal, the Minister of Economy Radu Oprea said earlier that CAD 267 million of the obtained funds would be allocated for a production centre for 120 mm and 155 mm 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.
