National Bank of Ukraine expands defense industry lending against state contracts
The National Bank of Ukraine (NBU) has adopted a third package of changes to support lending to the economy, with a focus on the defense industry and the energy sector.
The new rules allow banks to assess the collateral and credit risks of companies more flexibly, including companies affected by russian attacks.
Bank loans backed by state contracts
One of the key changes concerns companies carrying out contracts in the security and defense sector. The NBU has raised the collateral liquidity coefficient from 0.3 to 0.75 for property rights to receivables arising from goods delivered and services provided under such contracts.
This means banks will be able to recognize a larger share of the value of such collateral when assessing credit risk.
Access to financing is an important condition for the stable operation of Ukraine’s defense industry. Companies need to purchase materials and components, maintain production capacity, and fulfill contracts to meet the needs of the Defence Forces of Ukraine. That is why it is important for financial instruments to take into account the specifics of defense production and create additional opportunities to obtain credit.
The changes reflect the particular nature of defense production. Supplying goods and services under state contracts is an important source of revenue, while defense companies do not always have enough traditional collateral to obtain a loan.
Production inventory accepted as loan collateral
Until September 1, 2027, banks will be able to accept goods held in inventory or undergoing processing as collateral, based on their actual balances as of the credit risk assessment date. This applies to loans with a term of up to 18 months. The collateral value may not exceed the amount set out in the agreement.
This approach gives companies more opportunities to raise funds against their existing inventory and use those funds for current production needs.
Lending to defense companies affected by the war
The NBU has also allowed banks to take a more flexible approach to assessing companies’ ability to repay loans if their property has been significantly damaged or destroyed, or is located in a mined area.
In such cases, banks will be able to consider the company’s projected operating performance. This makes it possible to assess both a business’s current financial condition and its prospects for recovery. Combined with debt restructuring, this approach may make it easier for companies to resume operations.
More details are available in the National Bank of Ukraine’s press release and in NBU Resolution No. 118 dated October 11, 2026.
As previously reported, the Ministry of Defence of Ukraine also continues to implement its concessional lending program for defense industry enterprises. Since the program was launched nearly two years ago, more than 200 loan agreements have been signed, totaling UAH 12.5 billion.
