Ukraine defense industry gains access to over UAH 12.5 billion in concessional loans through the Ministry of Defence programme
The Ministry of Defence of Ukraine continues to implement its concessional lending program for defense industry enterprises.
Since the concessional lending program for the defense industry was launched nearly two years ago, 211 loan agreements have been signed, totaling UAH 12,509.88 million.
Defense industry loans of up to UAH 500 million to scale up production
Rapidly expanding production requires access to financing. Under the program, defense companies can obtain loans of up to UAH 500 million:
- for investment projects, with repayment terms of up to five years;
- for working capital, with repayment terms of up to three years.
Concessional loans enable manufacturers to invest in their capabilities, purchase the necessary equipment and components, and increase production more quickly. Our task is to ensure that these instruments directly contribute to strengthening Ukraine’s defense industry and increasing weapons deliveries to the Defence Forces of Ukraine.
The interest rate for participating companies is 5% per annum, with the state covering the remaining financing costs.
State support for defense production through concessional loans
Loan funds may be used to develop, manufacture, repair, modernize, and dispose of weapons, military and special-purpose equipment, ammunition, and their components. The program enables manufacturers to finance both expanding production capacity and the ongoing operational needs of fulfilling defense orders.
The concessional lending program for defense industry enterprises was introduced in 2024. It is available to companies designated as critically important to the functioning of the economy during the special period in the defense industry sector.
The Ministry of Defence has previously published a detailed explanation of how defense manufacturers can obtain concessional loans.
