The Cabinet of Ministers has approved a new programme to support the defense-industrial complex, allowing critically important enterprises to receive loans of up to 500 million UAH for a term of up to five years at an interest rate of 5% per annum.
This was announced by Prime Minister Denys Shmyhal during a government meeting on November 5.
"Over 500 defense enterprises are operating and producing a variety of weapons: ammunition, drones, artillery, armored vehicles. We are interested in increasing the number of such producers. Therefore, today we are approving a new preferential lending programme for the defense industry," he stated.
Shmyhal clarified that enterprises recognized as critically important by the Ministry of Strategic Industries will be able to obtain loans up to 500 million UAH for a term of up to five years at an interest rate of 5% per annum. He noted that the funds can be used either to replenish working capital or to implement investment projects.
"We expect that by next year, weapons production volumes will significantly exceed this year's figures," the Prime Minister emphasized.
Minister for Strategic Industries Herman Smetanin added,
"Today the Cabinet of Ministers approved a resolution that allows Ukrainian manufacturers of weapons and military equipment to finally access a programme for cheap loans. The interest rate for producers will be 5%, with the remaining interest covered by the budget."
According to him, 263.4 million UAH has already been allocated in the budget for the implementation of the programme this year.
Manufacturers will be able to take advantage of the preferential rate for loans of up to 100 million UAH for a term of up to three years to replenish working capital, or up to 500 million UAH for investment projects for up to five years.
These funds can be used for the development, production, repair, modernization, and disposal of weapons, military and special equipment, ammunition, their components, and other military-purpose products used to meet the needs of the Defense Forces.
The programme will be available to enterprises that the Ministry of Strategic Industries has already identified as critically important for the functioning of the economy during the special period in the defense industry sector.
