Romania borrows $920 million from the US for armament

A signing ceremony of the Agreement regarding the loan took from Romanai from the Military Financing Fund of the United States of America took place today. Prime Minister Marcel Ciolacu said that Romania’s access to a significant financing of 920 million dollars from the US is a strong argument of trust and status which our country enjoys in the relationship with our strategic ally.

“We will develop new production capacities in Romania, we will create jobs for Romanians and we will become relevant again in terms of the production of military equipment at the regional level. At the same time, we will have access to the highest level military equipment, which will help us work together with the US and our NATO allies to strengthen collective defense and deter threats to Romania and the countries on the Eastern flank of the Alliance“, the Romanian PM stated.

 The Head of the Executive added that in the vision of the Government he leads, this agreement is only the first stage of the future projects that they will develop together.

“We will also propose other strategic projects for Romania’s defense industry, which the line ministries have in an advanced phase of study, so that we reach a financing of over 2 billion dollars through the same financial mechanism. Today, Romania joins a very small club of key partner states of the USA, which have so far benefited from this program developed through the Financing Fund of the United States of America. I am glad that we will use this money both to strengthen Romania’s defense capacity, by equipping the Romanian Armed Forces with modern equipment, and to develop the local defense industry”, Ciolacu pointed out.

The US Ambassador to Romania, Kathleen Kavalec, stated in her turn that this loan represents the joint commitment to ensure peace, stability and security in the region. “This loan explores new territory in support of a joint US-Romania public-private initiative for the production of artillery ammunition. (…) By offering funds, American grants, our goal is to ensure that Romania remains at the forefront of innovation and military equipment for many years to come,” said ambassador Kavalec.

As U.S. Ambassador Kavalec added: “We operate today in a fundamentally different strategic landscape in Europe, and Romania’s response has been nothing short of exemplary.  You have shown the world what it means to be a responsible leader in uncertain times. Romania is a provider — and not just a consumer —of security within the NATO alliance.”

DSCA Director Miller continued, “Direct loans are a security cooperation tool reserved for only our most important security cooperation partners.  Romania remains one of the highest priorities for DSCA.” 

He noted his travel to Bucharest is a testament to U.S.-Romania defense cooperation.  “We look forward to continuing our partnership on programs that this loan may support,” Director Miller said.

Romania will become the only ammunition producer for Abrams tanks in Europe

The Minister of Economy, Radu Oprea, stated on Wednesday at the Government that the sum of 220 million dollars from the loan from the USA will be used for “creating a center of excellence in the production of large caliber 120-155 mm ammunition”.

“This center assumes that Romania will become the only producer of ammunition for the Abrams tank in Europe, and from here we will export to all of Europe and beyond,” he said.

The agreement was signed on Wednesday by the Minister of Finance, Marcel Boloș, and the Director of the US Security and Defense Cooperation Agency, Michael Miller.