The deal is expected to be signed in Warsaw on Friday by EU commissioners Piotr Serafin and Andrius Kubilius, alongside Poland's Defence Minister Władysław Kosiniak-Kamysz and Finance Minister Andrzej Domański.
The commissioners will then travel to Vilnius, with Lithuania also expected to be among the first countries to receive funds under the scheme, the report said.
Poland is the programme's largest beneficiary, with an allocation of EUR 43.7 billion.
It is awaiting an advance payment of around EUR 6.5 billion, which the European Commission, the EU's executive arm, plans to transfer by the end of May.
Friday's signing is conditional on the completion of internal EU procedures, according to officials in Brussels.
The European Commission is "working to ensure all formalities are ready by Friday," a source was quoted as saying.
Nineteen EU member states are expected to receive SAFE loans. Ten, including Poland, have already approved and returned draft contracts.
Once the agreements are signed, the Commission will raise funds on capital markets and distribute them to participating countries.
Poland plans to use the funds for projects including its Eastern Shield border defence programme, anti-drone and air defence systems, artillery and military transport infrastructure.
The government has said that 89 percent of the money will be spent within Poland, benefiting domestic industry and the wider economy.
The planned signing follows a political dispute in Warsaw. In mid-March, President Karol Nawrocki vetoed legislation that would have created a dedicated fund for the EU money.
The government responded by passing a resolution authorising the defence and finance ministers to sign the loan agreement on its behalf.
The Security Action for Europe (SAFE) programme provides up to EUR 150 billion in low-interest loans for military procurement, largely aimed at equipment produced in Europe.
It was established last year to help EU countries strengthen their defence capabilities amid Russia's war in Ukraine and uncertainty over future US engagement in Europe.
The programme also aims to reduce reliance on US-made weapons and boost Europe's defence industries.
(ał/gs)
Source: PAP