The Ministry of Finance presented the financing conditions on Thursday, with the announcement of the provision of pre-financing of approximately 2. 5 billion euros from the SAFE loan to Romania.
Thus, after the 10-year grace period, the repayment of each tranche will be made in equal annual installments until the final maturity. Romania benefits from the funds attracted by the European Commission from the markets, the loan costs being those borne by the Commission for the financing of the SAFE instrument, according to the European methodology. The amounts can be accessed until December 31, 2030.
The funding is not provided in full upfront. The money is made available in tranches, and access to it is conditional on the achievement of milestones associated with the projects and procurements included in Romanias European Defence Industry Investment Plan. Each subsequent tranche depends on the fulfillment of the assumed milestones.
We must transform these resources into completed projects, implemented contracts and investments that remain in the Romanian economy, said Finance Minister Alexandru Nazare. 35 projects financed through SAFE Romanias investment plan includes 35 projects. Approximately 75% of the funding is intended for the acquisition of military equipment, public order and civil defense, and about 25% for road infrastructure of national interest.
The funds granted to Romania through SAFE will be managed by the Ministry of Finance, and the overall coordination of the Plan will fall to the Chancellery of the Prime Minister. The implementation of projects and procurements in their fields will be handled by the Ministry of National Defense, the Ministry of Internal Affairs, and the Ministry of Transport and Infrastructure. Romanias commitments, independent of SAFE Romania committed, at the NATO Summit in The Hague in June 2025, to gradually increase defense spending to at least 3.
5% of GDP by 2035. Up to 1. 5% of GDP can be added to this for related investments in security and defense, including critical infrastructure and resilience.
According to the Ministry of Finance, these commitments had to be financed regardless of the existence of SAFE. However, the European instrument allows access to long-term loans, at the financing costs obtained by the European Union. SAFE does not create this expense, but helps us finance it more efficiently and sustainably, said representatives of the Ministry of Finance.