Signing of the SAFE Loan Agreement
The signing of the SAFE Loan Agreement, worth over 16.6 billion Euros, has been approved.
Leyla Cheamil, 06.05.2026, 13:50
Just before the vote of no confidence, the government in Bucharest approved on Tuesday, via a memorandum, the signing by the Minister of Finance of the Loan Agreement for the SAFE program, the “Security Action for Europe” instrument, between the European Commission and Romania, worth over 16.6 billion Euros. The amount allocated to Romania is the second largest, after that granted to Poland. Under the program, the European Union is making 150 billion Euros available to member states on favorable terms, in the form of competitively priced loans, for defense investments, which will enable them to acquire defense capabilities in the priority areas identified by the European Council. Romania and the European Commission are set to conclude a loan agreement, as well as an operational agreement, in accordance with the SAFE Regulation. The loan agreement primarily establishes the availability period and the detailed terms of the loan, while the operational agreement defines the relationship between the implementation of the plan and the loan granted.
The signing and approval of the loan agreement will be carried out in accordance with the legislative framework governing public debt, according to a government press release. The funds will be disbursed in installments, contingent upon Romania’s fulfillment of certain milestones related to the procurements and projects proposed by Romania through the country’s Investment Plan. The funds will be available until December 31, 2030. Additionally, the European Commission will provide pre-financing of 15% of the loan, amounting to approximately 2.5 billion Euros, following the entry into force of the Agreement. The pre-financing will be deducted proportionally from the value of the tranches to be subsequently disbursed from the loan, until it is fully offset, i.e., by December 31, 2028. The Ministry of Finance will manage the funds granted to Romania under the Instrument, and the Prime Minister’s Office will oversee the Plan.
On Monday, the government adopted a draft emergency ordinance to amend and supplement certain laws aimed at adapting the legal framework to facilitate the rapid implementation of certain investments in the defense industry. The new legislative measures were adopted by the Government as investments in the defense industry become a strategic priority, particularly given the opportunities created by accessing the SAFE program. A government communique shows that the ordinance creates a more flexible framework for state intervention in situations deemed critical to national security, with an emphasis on the protection and integrated utilization of defense industrial capabilities and on accelerating strategic investments. (LS)
