Ukrainian defence manufacturers receive 5 billion UAH in preferential loans over one year

Over the course of a year, Ukrainian defence sector manufacturers have received 80 loans under the state preferential credit programme, totalling nearly 5 billion UAH. A further 16 applications, amounting to around 700 million hryvnia, have already been approved for disbursement, while more than 50 applications exceeding 4 billion UAH remain at various stages of review, according to the Ministry of Defence of Ukraine.

Private manufacturers can receive up to 100 million UAH for working capital over a period of up to three years, and up to 500 million UAH for investment projects over a period of up to five years. The interest rate for enterprises is set at 5%, with the remainder covered by the state.

Loan funds can be used to modernise production capacities, purchase new equipment and components, expand operational activities, as well as to develop and launch serial production of new types of weapons and military equipment.

The initiative is being implemented by the Ministry of Defence in cooperation with the Ministry of Finance, the Entrepreneurship Development Fund, and Ukrainian banks. It provides financial support to critically important defence industry enterprises, particularly those in need of working capital to modernise production or launch new projects.

To participate in the programme, manufacturers must apply through one of five banks that meet security criteria: Ukreximbank, Oschadbank, MTB Bank, PUMB, and Credit Dnipro Bank.