US State Department Announces Ratification of $302 Million Defense Loan Agreement with Albania

The United States has announced that Albania has ratified and signed a $302 million loan agreement under the Foreign Military Financing (FMF) program, aimed at supporting the modernization of the Albanian Armed Forces.

In its official statement, the US Department of State emphasized that the loan will help Albania fulfill the commitment approved at the Hague summit to gradually increase defense spending to 5% of Gross Domestic Product (GDP) by 2035.

The United States also praised Albania as a NATO ally, noting that it has been closely aligned with Washington on key foreign policy issues.

“The United States is proud to announce Albania’s ratification and signing of a new $302 million Foreign Military Financing (FMF) loan, which will support Albania’s progress toward fulfilling the Defense Investment Pledge to spend 5 percent of GDP on defense by 2035.

The FMF loan will help modernize Albania’s armed forces by supporting the procurement of key US-origin capabilities and strengthening Europe’s ability to lead its own defense.

As a NATO ally, Albania has been closely aligned with the United States on critical foreign policy issues, including its role as a founding member of President Trump’s Board of Peace,” the State Department statement said.

Defense Minister’s Reaction

Defense Minister Ermal Nufi also responded to the State Department’s announcement, describing this strategic vote of confidence by the United States in Albania as a historic step in modernizing the country’s defense.

“Gratitude to the United States of America for its unwavering strategic partnership and continued support in building a stronger defense for Albania, the region and beyond. This support will accelerate the modernization of our military capabilities, increase operational readiness and strengthen Albania’s contribution to the Alliance’s collective security,” Nufi wrote on Facebook.

Ratification in Parliament Amid Debate

It should be recalled that, amid debate, the Albanian Parliament approved the loan from the United States of America, which is intended to increase funding for the defense sector with the aim of meeting NATO’s budget targets.

The agreement was ratified solely with the votes of the Socialists, as the Democratic Party did not participate. The opposition has even challenged the approval procedure before the Constitutional Court, claiming that it violated the Constitution.