Up to UAH 500 million for defense production: The Cabinet of Ministers increased the maximum amount of preferential loans fivefold

The Cabinet of Ministers has expanded the program to support the Ukrainian defense industry and increased the maximum amount of preferential lending to enterprises fivefold — from UAH 100 million to UAH 500 million. Funds will be available, in particular, for working capital and production development.

Prime Minister Serhiy Koretsky announced the changes. According to him, the decision should help enterprises scale production and increase the output of Ukrainian weapons.

The maximum amount has been increased fivefold

After the changes, defense industry enterprises that perform state defense contracts will be able to attract up to UAH 500 million in preferential financing.

Previously, the maximum amount of such a loan was UAH 100 million. Thus, the available limit was increased fivefold.

What will be the rates

For enterprises that perform state defense contracts, loans to replenish working capital will be provided at preferential rates from 5% to 10% per annum. The specific rate will depend on the loan amount.

At the same time, investment loans necessary for the development and expansion of production will be available at 5% per annum.

Thus, enterprises will be able to direct the attracted funds not only to current needs, but also to increase their own production capacities.

No additional funds from the budget are envisaged

According to the Prime Minister, the expanded program will operate through the National Development Agency.

At the same time, it is planned to use already provided budget funds for its implementation.

The government’s decision is aimed at expanding access to financing for enterprises of the defense-industrial complex against the background of the need to scale up the production of Ukrainian weapons.