Croatia signs loan agreement under the SAFE Instrument

A meeting between Prime Minister Andrej Plenković and European Commission Commissioner for Defense and Space Andrius Kubilius has begun in the government offices. Ministers Ivan Anušić and Tomislav Ćorić will sign a loan agreement under the SAFE Instrument with the Commissioner.

Šime Vičević, reporting for Croatian Television news, said that the loan amounts to one billion and seven hundred million euros, and will be used to finance all projects envisaged in the National Defense Investment Plan.

“These are investments in the procurement of the Leopard tank, the Cezar self-propelled howitzer, the Tatra heavy cargo truck, but there are also two projects for the procurement of ammunition,” he said.

He added that the EU launched this new mechanism last year when new global security circumstances arose, and, as he said, the loan will function on the principle that the EU borrows on international markets under favorable conditions.

He emphasized that this would mean for Croatia that it will start joint procurement with other EU countries at more favorable prices. He emphasized that through this mechanism, Croatia will increase its allocation to the defense sector, which is currently at two percent of GDP, and NATO's goal is to increase it to five percent in the next decade when we talk about defense and other related sectors.

“The signing of this agreement was also discussed at today's Government session,” said Vičević.

“Today, Andrius Kubilius, former Lithuanian Prime Minister, currently the EC Commissioner for Defense, is visiting us. After the Government session, we will sign a loan for the SAFE Financial Instrument, which provides us with a loan of one billion and seven hundred million euros. I would like to thank Ministers Ivan Anušić and Tomirlav Ćorić for preparing this document, with which we will invest in additional equipment and strengthening the capabilities of the Croatian Army,” emphasized Prime Minister Andrej Plenković.

Source: HRT