ISTANBUL

The European Investment Bank announced Thursday that it signed a strategic agreement with Italy to provide €107.5 million ($126 million) funding to help strengthen the country's defense and security capabilities.

"The EIB financing will contribute to the purchase of helicopters for the Italian army," the lending arm of the EU said in a statement.

It said the funding operation constitutes a part of the EIB’s broader commitment to European security and defense and that the bank recently expanded its eligibility criteria to backing military projects, in line with EU priorities.

The conditions of the funding will enable the Italian government to make substantial interest savings over the 20-year term.

“This agreement shows the EIB’s growing commitment to supporting European security and defense, and is the result of ongoing fruitful dialogue with the Italian government to promote strategic investments strengthening the competitiveness and security of Italy,” said EIB Vice-President Gelsomina Vigliotti.

“We will continue to work side by side with our partners to safeguard the strategic autonomy of the EU," she added.

This operation is the third agreement of its kind between the EIB and Italy. In 2022, the bank provided €240 million to finance the purchase of 16 light helicopters for the Italian Carabinieri and upgrades to the national air traffic control system, while in 2020 it provided €220 million to build three hydro-oceanographic vessels.