Sweden to Strengthen its Defense with $31 Billion in Loans

The Swedish government has announced that all parties in parliament have agreed to support its plan to invest in defense through loans.

Reuters reported on this.

This regards loans of up to 300 billion Swedish kronor ($31 billion), which will be used to re-equip the country’s civil and military defense.

“Sweden is in a very serious security situation. Therefore, it is very good that we can present a broad and long-term political agreement on very large defense investments in the coming years,” Defense Minister Paul Johnson shared at a press conference.

It is noted that the political parties have been negotiating this agreement in recent months.

According to the new defense agreement, Sweden plans to increase military spending on defense to 3.5% of GDP by 2032 at the latest, Jonson said.

The Swedish Defense Materiel Administration (FMV) recently signed a contract to repair and upgrade 110 Stridsvagn 122 tanks (adapted to Swedish Leopard 2A5 requirements) to the Stridsvagn 123A (Leopard 2A8) level.

In addition, in January 2025, FMV signed a contract with KNDS to supply 44 new Leopard 2A8 tanks. Adapted to Swedish requirements, the vehicles will be called Stridsvagn 123 B.