U.S. President Joe Biden's government announced today that it is offering a $2 billion loan to Warsaw to help modernize Poland's defense.

In a statement, the State Department said Poland was a "determined" U.S. ally whose "security is vital to the collective defense" of NATO's eastern flank and that such funding was reserved for Washington's most important security partners.

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The U.S. government is also providing Warsaw with up to $60 million to cover the cost of the loan in the form of Foreign Military Financing (FMF), which will support "emergency purchases of defense products and services from the United States," the State Department said. That $60 million A loan subsidy is intended to ensure that Warsaw will be able to provide favourable loan terms.

Poland is in the process of modernizing its weapons and military equipment to replace what it has handed over to Ukraine by placing orders with U.S. and South Korean defense companies.

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Modernization of the Army