The U.S. and Poland have agreed to a Foreign Military Financing loan worth $3.08 billion. The deal represents the third loan by the U.S. to the Polish Ministry of National Defence. With this formalized loan, total U.S. financing to Poland has now reached $7.08 billion.
The agreement aims to strengthen the defense relations between the U.S. and Poland while supporting Ukraine in its ongoing conflict with Russia. The loan contract, signed on August 13th, will fund the procurement of 96 Boeing AH-64E Apache helicopters for the NATO partner.
On the same day, Poland signed a Foreign Military Sale (FMS) agreement for the American-made attack helicopters. The potential sale, which includes supporting equipment and munitions, is worth approximately $12 billion.
The Apache sale includes a related offset agreement for the Polish defense industry to participate in the future support of the largest-ever export order for the AH-64E aircraft. The new-build AH-64Es will serve Polish attack helicopter modernization efforts as they replace an aging and outdated Mi-24 “Hind” fleet.
August also saw progress for the Polish fighter initiative as Lockheed Martin celebrated the nation’s first F-35A off the production line from its Fort Worth facility. Poland formalized an order for 32 F-35As in 2020 for $4.6 billion. AZ-01, the first “Husarz” example, will be officially released to the Polish Air Force in December.
Polish efforts to strengthen its rotary and fixed-wing fleets align with increased defense spending plans in recent years. In the wake of the Russo-Ukrainian War, Poland has dramatically increased investments in its armed forces. According to Forecast International’s defense markets group, Poland grew its overall defense spending from 2022 to 2023 by over 68%. Poland plans to allocate roughly $29.6 billion for 2024 to its defense budget, a 21.2% increase from 2023 levels.
The announcement of the military financing loan between Poland and the U.S. underscores the deepening defense relationship between the two partners amidst security concerns in Europe. Poland’s military aviation modernization efforts exemplify the growing trend of Western arms sales and reinforcement of the NATO security framework on the alliance’s eastern boundary.
A former naval officer and helicopter pilot, Jon covers a range of Forecast International reports and products, drawing on his 10-year background in military aviation, operations, and education. His previous military assignments include multiple overseas deployments supporting operations in the Arabian Gulf, NATO exercises, and humanitarian missions. Jon’s work is also influenced by his time as a former Presidential Management Fellow and international trade specialist at the Department of Commerce.
Before joining Forecast International, Jon also served as an NROTC instructor and Adjunct Assistant Professor at the University of Texas, where he taught undergraduate courses on naval history, navigation, defense organization, and naval operations and warfare. A lifelong reader and learner, his academic and professional interests include aviation, political and military history, national defense and security, and foreign area studies.
