Albanian President Signs Agreement on $302 Million US Loan
The President of Albania, Bajram Begaj, signed a decree promulgating the law ratifying the agreement with the United States on a loan worth $302 million for the modernization of the country's defense capabilities under the U.S. Foreign Military Financing (FMF) program.
The funds will be used for the purchase of American-made military equipment, with loan repayment scheduled over 12 years, Albania's “Gazeta Tema” reported today.
The Albanian parliament adopted the agreement on July 27 with 74 votes from deputies of the ruling Socialist Party.
Negotiations between Tirana and Washington on this arrangement began in 2024, and the entire loan amount will be allocated for the procurement of military equipment produced in the United States.
According to Albanian media, Albania plans to acquire combat systems and military equipment, including assets of an offensive nature.
The FMF program is intended to strengthen Albania's defense capabilities and improve the interoperability of its armed forces with the security structures of the Euro-Atlantic alliance.
The loan repayment period is 12 years, and the interest rate is expected to range between four and five percent.
