A year of preferential lending for defense industry manufacturers: 80 loans totaling nearly UAH 5 billion

Over the course of a year of operation, the preferential lending program has provided Ukrainian defense industry manufacturers with 80 loans totaling nearly UAH 5 billion.

Currently, another 16 applications from defense enterprises for a total of 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 is an effective support tool that helps our manufacturers scale up faster and move from development to mass production. The state is creating conditions for the defense industry to smoothly perform two important tasks: providing more Ukrainian weapons for the security and defense forces and building a sustainable defense economy,” said Deputy Minister of Defense of Ukraine Anna Gvozdiar.

The affordable lending program is being implemented jointly by the Ministry of Defense of Ukraine, the Ministry of Economy, Environment and Agriculture of Ukraine, and Ukrainian partner banks 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 for working capital – for a 3-year term;
• up to UAH 500 million for investment projects – for a 5-year term.

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

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

To obtain an affordable loan, manufacturers shall apply to one of the program's partner banks. Currently, five banks that meet the security criteria are participating in the aforesaid program.