Financial sector news

During the year of the preferential lending program, Ukrainian defense industry enterprises received 80 loans totaling nearly UAH 5 billion.

Currently, 16 more applications from defense enterprises totaling nearly UAH 700 million have been approved for issuance. In addition, 52 applications for more than UAH 4 billion are at various stages of consideration.
This was reported by the press service of the Ministry of Defense.
The preferential lending program is being implemented jointly by the Ministry of Defense, the Ministry of Economy, and partner banks, and is intended to provide defense industry enterprises with quick access to financial resources for expanding production.

Private sector manufacturers that lack working capital to improve and scale up their production capacities can receive:

• up to UAH 100 million in working capital for up to 3 years;
  
  
• up to UAH 500 million for investment projects for up to 5 years.

The interest rate for defense industry enterprises is 5%, with the rest compensated by the state.

Loans can be used to modernize production, purchase new equipment and components, expand operations, and support the development of new weapons and military equipment and their launch into serial production.

Currently, five banks that meet security criteria are participating in the program. Recently, the head of the NBU called on banks to be more active in lending to Ukrainian weapons manufacturers.