National Development Agency begins operating in Ukraine, representing a new level of business support and economic recovery

On 1 January 2026, the National Development Agency (NDA) was launched in Ukraine. It is a state financial institution established on the basis of the Entrepreneurship Development Fund (EDF). The relevant changes are enshrined in the Law of Ukraine "On the National Development Agency" No. 4622-IX of 8 October 2025, which came into force on 29 October 2025.

Legislative basis and international support

The law was drafted in cooperation between the Ministry of Finance, the EDF, KfW and Deloitte consultants, and was agreed with the World Bank and the European Union.

The Entrepreneurship Development Fund, which implements the state programme Affordable Loans at 5-7-9% and has proven its effectiveness in ensuring economic stability and growth, has become a platform for launching the National Development Agency, and further integrating Ukraine into the European financial ecosystem. The law also paves the way for direct cooperation between the NDA and the EU, which will allow funding from European programmes to be attracted to support Ukrainian entrepreneurs.

NDA operating model and status

The operating model of the National Development Agency is in line with best European practices, in particular the KfW approaches, which combine institutional autonomy and strategic partnership with the Government.

The NDA will operate as a financial institution with special status, based on the principle of a ‘second-tier institution’, without the aim of making a profit.

With the adoption of the law on the NDA, not only the institution itself underwent a transformation, but also the banking system was transformed from a two-tier to a three-tier system, in which the NBU shall implement monetary policy, and the NDA shall ensure the availability of financing for sectors of the economy that are priorities for the Government through Ukrainian banks.

Its key mission is to ensure access to preferential financing for micro, small and medium-sized businesses through partner banks. The institution has autonomous management, adapted regulation by the NBU and powers to administer state business support programmes.

Powers and areas of activity

The law defines a broad mandate for the National Development Agency, including:

• provision of financial services (lending, guarantees, dealer activities);
• providing grants and other types of free and non-repayable financial assistance;
• compensating interest rates, principal amounts and other payments on loans, leasing, factoring, guarantees, as well as compensating insurance premiums and contributions;
• developing, supporting and administering national, regional and local programmes, international technical assistance projects, initiatives of international financial organisations, foreign states and the European Union;
• mediation in the distribution of funds between financial institutions within programmes and projects;
• evaluation of the effectiveness and analysis of the impact of programmes, investment research and financial analysis;
• support for educational activities;
• investment activities.

Recovery institution

The National Development Agency is designed to become a central element of Ukraine's financial recovery infrastructure, combining state economic policy, international partnerships and real financial opportunities for Ukrainian businesses. The creation of the NDA is an important step towards systematic support for SMEs, attracting international resources and ensuring sustainable economic growth in the country.