In a development for the Polish military landscape, the Ministry of National Defence of the Republic of Poland announced on October 1, 2024, that Poland and the United States had finalised an agreement for a $3.08bn (12.1bn zlotys) Foreign Military Financing (FMF) loan.

This loan, aimed at supporting Poland’s defence capabilities, will primarily fund the acquisition of AH-64E Apache helicopters, marking a step in the ongoing modernisation of the Polish Armed Forces.

This latest agreement marks the third FMF loan extended to Poland by the US government in recent months. The previous loan, finalised on July 1, 2024, along with this new agreement, brings the total amount of US direct loans to Poland to $7.08bn, solidifying Poland’s position as the largest beneficiary of the FMF programme in recent years.

Last month, the US State Department announced a $920m Foreign Military Financing (FMF) loan to Romania to support the country’s military modernisation efforts as a Nato partner on the Eastern Flank.

Modernising the Polish military

The AH-64E Apache, an attack helicopter, will play a role in Poland’s future defence strategy. The contract for the helicopters was signed on August 13, 2024, and this latest financing agreement will enable Poland to expedite the delivery and integration of these helicopters into its military operations.

Several countries are adopting the AH-64E Apache helicopter. South Korea recently approved a $3.5bn purchase of 36 additional AH-64E units, expanding its fleet of 36 helicopters. The UK is also enhancing its capabilities by acquiring 50 AH-64E helicopters, with 41 already delivered. Meanwhile, Australia is preparing for the arrival of 29 AH-64E helicopters.

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The Apache is one of many programmes that show Poland’s dedication to the transatlantic alliance and its relatively new Western ties. GlobalData’s “Poland Defense Market 2024-2029” report highlights that the Boeing AH-64E Apache carries a 30mm M230 chain gun and usually comes equipped with AGM-114 Hellfire missiles and Hydra 70 rocket pods.

At the MSPO International Defence Industry Exhibition, Boeing encouraged the Polish Armed Forces to consider the CH-47F Block II Chinook transport helicopter to complement their incoming AH-64E Apache fleet. Boeing argues that using the Chinook alongside the Apaches would enhance operational effectiveness and expand the Polish military’s mission capabilities.

Integrating the Apache helicopters is expected to enhance Poland’s defence posture and provide an asset in joint operations with Nato allies.

The emphasis on supporting Ukraine and enhancing regional security will remain central to Poland’s defence strategy and its relationship with the United States.

The ongoing conflict in Ukraine is reshaping the defence landscape in Central and Eastern Europe (CEE), where countries historically under Russian influence are increasing military capabilities in response to perceived threats. Poland, aiming to become the largest military force in the EU by the end of 2023, has committed to raising its defence budget to 3% of GDP, with long-term goals of 5%.