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Poland To Sign $4 Billion US Loan Guarantee To Boost Military Modernisation

Poland plans to sign a $4 billion US loan guarantee to help fund the modernisation of its armed forces

Poland is poised to sign a $4 billion loan guarantee agreement with the United States to support its ongoing military modernisation efforts, the Polish defence ministry announced on Thursday.

The move comes as part of Warsaw’s broader strategy to strengthen its armed forces amid heightened regional tensions and Russia’s protracted war in neighbouring Ukraine. The new financing will aid in bolstering NATO’s eastern flank, where Poland plays a key strategic role.

Since 2022, the US has extended more than $11 billion in loans and loan guarantees to Poland, facilitating the acquisition of advanced weaponry including Patriot air defence systems, HIMARS rocket systems, and Apache attack helicopters.

Driven by security concerns following Russia’s full-scale invasion of Ukraine, Poland has emerged as NATO’s highest defence spender relative to GDP. In 2025, the country plans to allocate 4.7% of its GDP to defence, with intentions to increase this to 5% by 2026.

The upcoming loan guarantee underscores deepening defence ties between Washington and Warsaw as both nations seek to counter growing security threats in Eastern Europe.

Melissa Enoch

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