The United States will sign a $920 million direct loan agreement with Romania on Wednesday to support its defense modernization program.

Reuters reported on this.

The governments of the United States and Romania have agreed to sign the relevant agreement on September 25, 2024.

The opportunity to receive additional funds will ensure the planned modernization of the armed forces and support the country’s overall defense capability as a NATO member.

Within the loan agreement, the Defense Ministry will directly access $700 million, while up to $220 million will go towards state-owned ROMARM.

The ROMARM company controls 15 companies that manufacture weapons and ammunition ranging from gunpowder to guided missiles.

The loan has a 12-year repayment plan.

In August, the Romanian government allowed the country to tap a total of $4 billion in direct loan agreements through FMS, as well as up to $8 billion from the financial markets with U.S. government guarantees.

Romania is implementing ambitious plans to purchase modern military equipment, including South Korean K9 Thunder self-propelled howitzers, KP-SAM man-portable air defense systems, and medium-range anti-aircraft missile systems.

In addition, the new purchases will include 32 new-generation F-35A fighter jets, eventually replacing the Romanian Air Force’s fleet of F-16s that the country bought from Norway.

In addition, the F-35 procurement includes training services, aircraft maintenance, components, infrastructure, maintenance, and updating of the electronic warfare signature database.

Militarnyi previously reported that the Romanian Ministry of Defense decided to purchase additional AAV-7 amphibious vehicles from the U.S. Marine Corps.