The United States has formally approved a $302 million loan agreement with Albania aimed at increasing defense spending and accelerating the modernization of the country’s armed forces, the U.S. State Department has announced.
According to the State Department, the loan will support Albania’s efforts to meet its Hague Defense Commitment by increasing defense expenditure to 5 percent of gross domestic product.
“The loan will support Albania’s progress toward meeting the Hague Defense Commitment to increase spending in this sector to 5 percent of GDP,” the State Department said in its announcement.
The agreement is also expected to facilitate the acquisition of key U.S.-origin defense capabilities and contribute to the modernization of Albania’s armed forces.
The State Department said the financing would strengthen Albania’s military capabilities while contributing to Europe’s broader ability to provide for its own defense.
“As a NATO Ally, Albania has closely aligned itself with key U.S. foreign policies, including by becoming a founding member of President Trump’s Board of Peace,” the statement added.
Albania’s Defense Minister Ermal Nufi welcomed the U.S. decision and thanked Washington for what he described as its continued strategic support.
“Gratitude to the United States of America for its unwavering strategic partnership and continued support in building a stronger defense for Albania and the wider region,” Nufi said.
He added that the agreement would accelerate the modernization of Albania’s military capabilities, increase operational readiness and strengthen the country’s contribution to NATO’s collective security.
The $302 million agreement, which was approved by Albania’s Parliament last week and subsequently decreed by President Bajram Begaj, has also triggered a political dispute in Tirana.
The opposition Democratic Party did not support the agreement, arguing that the government failed to follow parliamentary procedures in passing the legislation.
The Democratic Party has referred the law to Albania’s Constitutional Court, alleging seven separate violations by the governing majority.
Despite the domestic political controversy, the agreement represents a significant expansion of U.S.-Albanian defense cooperation and is expected to provide additional resources for the modernization of Albania’s armed forces.
