23 Ukrainian banks join defence industry financing programmes

Copied! The National Bank of Ukraine has signed a memorandum with 23 commercial banks to expand access to capital for the domestic defence sector. The signatory institutions account for more than 75% of the total net assets within Ukraine’s banking system, meaning the framework is designed to streamline and simplify lending procedures for military manufacturers. Under the terms of the memorandum, financial institutions can collaborate with defence industry enterprises across four distinct operational models: consortium or syndicated financing designated for large-scale industrial projects, direct financing for manufacturers of weapons, ammunition, and military hardware, financing dedicated to dual-use goods, financing tailored for small and medium-sized enterprises within the defence supply chain operating under active contracts. Concurrently, banks plan to transition away from traditional “hard collateral” requirements. Loan security frameworks can instead utilize the financed assets or goods in circulation. Property rights to accounts receivable, insurance instruments, and corporate guarantees from business owners or parent entities will also be accepted. Additional security can be provided via guarantees from the state, international financial institutions, or export credit agencies. The Ministry of Defence stated that this framework will scale up both production volume and quality across Ukrainian defence enterprises. It will also accelerate innovative R&D and support national export potential. Furthermore, lending institutions will retain the capability to track the deployment of financial resources via integrated financial monitoring protocols. According to National Bank Governor Andriy Pyshnyi, the aggregate volume of loans and financial guarantees extended to the defence sector throughout 2025 exceeded UAH 60 billion. The NBU emphasized that the memorandum is strategically intended to sustain this “dynamic growth” in capital allocation for defence manufacturers. Earlier reports indicated that the Ministry of Defence launched a preferential leasing initiative for defence enterprises. By April, defence manufacturers had secured 125 preferential loans cumulative valued at UAH 7 billion under the state-backed credit support programme for arms producers implemented by the defence ministry.