Automatically translated version. May contain inaccuracies compared to the original.
Defense manufacturers will be able to borrow up to 500 million UAH, and investment loans will be issued at 5% per year.
The Cabinet of Ministers fivefold increased the maximum amount of favorable loans for Ukrainian defense enterprises: now it will reach 500 million UAH instead of 100 million. The government expects that this will help scale up production and increase the output of weapons for the front. Prime Minister Serhii Koretzky stated this on Wednesday.
He clarified what the loans will be used for: “Enterprises that fulfill state defense contracts will be able to attract up to 500 million UAH in working capital at favorable rates of 5–10% per year, depending on the loan amount.”
Investment loans for development of production will be issued at 5% per year.
The program will be operated by the National Development Institution. Financing will be carried out from funds provided in the budget.
The government began issuing cheap loans to defense companies at the end of 2024 year, when the first favorable loan was received by a weapons manufacturer. The budget for this program allocated 500 million UAH. Already in June 2026 year, then Prime Minister Yulia Svyrydenko reported that weapon makers had attracted 9,8 billion UAH under 162 loan agreements. For development of production at that time it was possible to take up to 500 million UAH for up to five years, and only up to 100 million UAH for replenishing working capital.
About why Ukrainian development institutions still distribute budgetary funds more than attracting private capital, see ZN.UA article “The Pump Won’t Pump. What’s Wrong with Ukrainian Development Institutions,” written by Serhii Volkov, president of the Ukrainian National Mortgage Association.
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