Weapon manufacturers can attract up to 500 million UAH for facility upgrades at 5% annual interest
Over the nearly two years of the state programme, defence industry enterprises have attracted 12.5 billion UAH through 211 concessional loan agreements. The funding enables companies to scale production and modernise equipment. This is reported by the portal PromPolitInform, citing information from the Ministry of Defence of Ukraine.
Under the state programme, manufacturers can obtain funds of up to 500 million UAH. For investment projects, the term is set at up to five years, while loans for working capital replenishment are issued for terms of up to three years.
Terms and financing objectives
«Concessional loans give manufacturers the opportunity to invest in their own capabilities, purchase necessary equipment and components, and increase production volumes faster. Our task is to ensure that such instruments directly contribute to strengthening the Ukrainian defence industry and increasing weapons supplies for the Ukrainian Defence Forces», — noted Deputy Minister of Defence of Ukraine Hanna Hvozdiar.
For businesses, the interest rate on such loans is set at 5% per annum. The difference in financing costs is covered by the state budget.
Specialisation and selection criteria
Enterprises direct the attracted funds towards the development, repair, modernisation, manufacturing, or disposal of military equipment and ammunition. The programme was launched in 2024 to support manufacturers designated as critically important for the economy during the special period.
Photo: Ministry of Defence of Ukraine
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