Poland to receive defence loan under EU SAFE programme

Poland is finalising the approval process for what is described as the largest defence financing in the history of the European Union.

According to Polish media, Deputy Prime Minister Władysław Kosiniak-Kamysz said that a loan agreement under the SAFE (Security Action for Europe) programme will be signed in Warsaw on May 8, opening a credit line of nearly 44 billion euros for the country’s rearmament.

Following the signing, Poland will immediately receive an advance payment of 6.5 billion euros. Final approval of the document still rests with the College of European Commissioners, the report added.

Sources in Brussels noted that the agreement text has already been submitted to the European Commission and is expected to be formally approved by the end of the week.

The Polish side has confirmed key parameters of the deal, including a total loan amount of 43.7 billion euros and the banking arrangements through which the funds will be transferred to the state budget.

Earlier, the European Commission raised questions regarding the role of Poland’s state development bank in the agreement. However, its participation was ultimately approved as a mechanism that would not increase the country’s budget deficit.

The agreement is expected to be signed by representatives of the European Commission as well, including Budget Commissioner Piotr Serafin and Defence Commissioner Andrius Kubilius.

By Jeyhun Aghazada