The agreement provides a US$302 million loan from the United States to modernise Albania’s Armed Forces. Parliament approved the request to examine the agreement under an accelerated procedure with 75 votes in favour.

The agreement was concluded under the US Foreign Military Financing (FMF) programme and provides Albania with a direct US$302 million loan. The Albanian government approved the agreement in principle on 19 June, while the US side is represented by the Defense Security Cooperation Agency (DSCA).

According to the document, the US$302 million fund is intended to enable Albania to make significant investments in military equipment and defence capabilities as part of its security cooperation with the United States.

The move comes as Tirana seeks to rapidly strengthen its defence capabilities and demonstrate its commitment to meeting its NATO obligations. Albania is under pressure to increase its actual defence spending, while questions have been raised within the Alliance over the country’s relatively low level of defence funding and its preparations to host the 2027 NATO Summit in Tirana.

For Albania, this agreement represents one of the largest defence financing packages ever dedicated to the country’s military sector.