The U.S. Department of State has officially announced the ratification of a $302 million loan agreement with Albania to support investments in the country’s defence sector.

In its official statement, the State Department said the agreement will help Albania meet its commitment to allocate 5% of its Gross Domestic Product (GDP) to defence by 2035. It also noted that the loan will contribute to the modernization of the Albanian Armed Forces.

“Today, the United States is proud to announce the ratification and signing by Albania of a new $302 million Foreign Military Financing (FMF) loan, which will support Albania’s progress toward fulfilling the Hague Defence Commitment to spend 5% of GDP on defence by 2035.

The FMF loan will help modernize Albania’s Armed Forces by supporting the procurement of key U.S.-origin capabilities and strengthening Europe’s ability to lead its own defence.

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

Albanian Minister of Defence Ermal Nufi also welcomed the announcement in a Facebook post, describing it as a historic step in the modernization of Albania’s defence and a strategic vote of confidence by the United States.

“The State Department has officially announced the ratification of the $302 million loan agreement under the Foreign Military Financing (FMF) Program.

This is a strategic vote of confidence by the United States in Albania and a historic step toward modernizing the country’s defence. We are grateful to the United States for its unwavering strategic partnership and continued support in building a stronger defence for Albania, the region, and beyond.

This support will accelerate the modernization of our military capabilities, enhance operational readiness, and strengthen Albania’s contribution to the collective security of the Alliance,” Nufi wrote.