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Polish Defense Ministry is About to Go Bankrupt After $66B Arms Deal – Ex-Minister Blaszczak

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Polish Defense Ministry is About to Go Bankrupt After $66B Arms Deal – Ex-Minister Blaszczak

Buying 1,000 tanks, 500 HIMARS, 100 Apaches and a bunch of other weapons was easy for Poland, but paying for them might be not so, the politician warns

Poland is undertaking its largest-ever arms procurement, with costs projected at around 66 billion dollars — and likely to rise even higher.

The deal spans a massive array of weaponry: 1,000 K2 Black Panther tanks alongside hundreds of M1 Abrams, 500 HIMARS launchers and several hundred K239 Chunmoo rocket artillery systems, around 100 Apache attack helicopters, dozens of F-35 fighters, more Patriot air defense systems… The list goes on, but the silver lining is, every item comes with a price tag — and the combined bill is staggering.

Read more: With $6.7B Contract on K2PLs Signed, Poland's Tank Industry is Set For Revival

This is where concerns emerge, with some warning the Polish Ministry of Defense may end up declaring bankruptcy. Former defense minister Mariusz Błaszczak, credited as the architect of this rearmament, has sounded the alarm.

In 3 to 4 years, the country's defense department will become unable to pay, he stated, citing correspondence between defense and finance ministries. The latter insisted that all funds come solely from the defense budget, with no supplementary funding.

Mariusz Błaszczak signs a purchase order for Abrams M1A2 SEP V3 / Defense Express / Polish Defense Ministry is About to Go Bankrupt After $66B Arms Deal – Ex-Minister Blaszczak
Mariusz Błaszczak signs a purchase order for Abrams M1A2 SEP V3 / Photo credit: Polish Ministry of National Defense

"If nothing changes, this process will lead to the bankruptcy of the Ministry of National Defense. Under the Homeland Defense Act, we introduced a mechanism for financing modernization of the Polish military from extra-budgetary funds, obtained, for example, through bond issuance. However, the practice is different: the Ministry of Finance has forced the Ministry of Defense to ensure that all loan and credit repayments are made exclusively from the state budget," Błaszczak said.

Defense Express notes, however, that Błaszczak's comments should be viewed in light of the ongoing political rivalry in Poland — he is a member of the opposition Law and Justice party.

Even so, his concerns about financing may hold weight. Warsaw has already relied heavily on loans for past arms purchases, particularly from South Korea, thus effectively shifting the burden of payments to the future. Now, repayment deadlines are looming. By 2027, the state fund supporting the armed forces can leave an $80 billion gap in the budget.

Dynamics of the Polish Armed Forces fund debt growth / Defense Express / Polish Defense Ministry is About to Go Bankrupt After $66B Arms Deal – Ex-Minister Blaszczak
Dynamics of the Polish Armed Forces fund debt growth are marked in red / Infographic credit: Defence24

It is also notable that Warsaw's decision to buy American and Korean weapons rules out access to European Union defense financing programs, which apply only to purchases from European manufacturers.

Still, against the threat from russia, Warsaw may consider it better to rather shoulder the debt while well-armed than to have money in reserve but remain vulnerable.

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