Albania’s Parliament Approves $302 Million US Defense Loan
Albania’s parliament approved a $302 million US loan to fund military purchases, as the NATO member steps up defense spending and prepares to host the
Albania’s parliament approved a $302 million US loan to fund military purchases, as the NATO member steps up defense spending and prepares to host the alliance’s next summit. Lawmakers in Tirana resorted to an accelerated procedure to pass the defense agreement on Monday. Opposition politicians said they supported military investments but objected that they had been given little time to examine the deal, parts of which were confidential and required lawmakers to sign declarations before being given access to read it.
While the Albanian government hasn’t disclosed the interest rate nor identified the equipment and services it plans to buy with the funds, the Defense Ministry said the loan will finance procurements for Albania’s air, land and naval forces, alongside cyber defense, command systems and military infrastructure, according to a statement to Bloomberg News. The vote took place as two-month old protests dubbed the Flamingo Revolution continued outside parliament over planned luxury resorts linked to Jared Kushner, US President Donald Trump’s son-in-law.
Police detained several people on Monday as the demonstrations now call for Prime Minister Edi Rama to resign. The defene loan will be channeled through the US Foreign Military Financing program, with the Defense Security Cooperation Agency representing Washington. It will be repaid over as many as 12 years and disbursed gradually for specific military needs, according to Taulant Balla, head of the ruling Socialist Party’s parliamentary group. Albania would have 48 months to activate the financing, with a grace period of as long as 12 months, Balla said.
Albania’s 2026 defense budget is 58.9 billion lek, 12% higher than last year and equivalent to 2.2% of GDP, according to the country’s Defense Ministry. That puts the country just above NATO’s previous 2% guideline but below the alliance’s new 3.5% target for 2035. NATO Secretary General Mark Rutte confirmed this month that the alliance’s next summit will be held in Albania, though the timing has not been decided. ©2026 Bloomberg L.P.
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