The United States has described its $302 million loan to Albania as a key step in supporting the country’s plan to increase defense spending to 5% of GDP by 2035.
In a statement shared by the U.S. Embassy in Tirana, the U.S. Department of State said the loan, provided through the Foreign Military Financing (FMF) program, will help modernize the Albanian Armed Forces by supporting the acquisition of key U.S.-made defense capabilities.
According to the State Department, the financing will also strengthen Europe’s ability to take greater responsibility for its own defense.
The statement also praised the close foreign policy cooperation between the two countries.
“As a NATO ally, Albania has closely aligned with the United States on key foreign policy issues, including as a founding member of President Trump’s Peace Board,” the State Department said.
Both Albania and Kosovo are founding members of President Donald Trump’s Peace Board, an initiative aimed at promoting global peace.
Albania’s Ministry of Defense described the agreement as a strategically significant milestone and a strong expression of U.S. confidence in Albania.
The Albanian Parliament approved the loan agreement on July 27, with the government calling it a historic deal and a sign of Washington’s trust. Defense Minister Ermal Nufi said the funds will be used exclusively to modernize the Armed Forces through the purchase of defense equipment and services that meet NATO standards.
Under the agreement, Albania will have 48 months to activate the funds and 12 years to repay the loan. The use of the funds will be monitored by the U.S. Defense Security Cooperation Agency (DSCA).
The agreement was approved solely by the parliamentary majority. Although the opposition expressed support for the substance of the deal, it boycotted the vote, arguing that the approval process violated constitutional procedures.
Following the vote, lawmakers from the opposition Democratic Party challenged the ratification before the Constitutional Court, claiming the agreement was rushed through Parliament without giving MPs adequate time to review the text, in violation of constitutional requirements.
Albanian President Bajram Begaj signed the law ratifying the agreement on July 30.
