The Cabinet of Ministers has approved a new program of preferential lending to defense companies, under which companies that the Ministry of Strategic Industries recognizes as critical will be able to receive a preferential loan of up to UAH 500 million.
This was announced by Prime Minister Denys Shmyhal during a government meeting, reports UNN.
Details
More than 500 defense companies operate and produce a variety of weapons: ammunition, drones, guns, armored vehicles. We are interested in seeing more and more of these manufacturers. Therefore, today we are approving a new program of preferential lending to the defense industry. Enterprises that the Ministry of Strategic Industry recognizes as critically important will be able to receive a loan of up to UAH 500 million for up to 5 years at 5% per annum
The Prime Minister emphasized that the funds could be used either to replenish working capital or to implement investment projects.
“We expect that next year's arms production will significantly exceed this year's figures,” Shmyhal added.
Addendum Addendum
The government's representative in the Verkhovna Rada, Taras Melnychuk, said that the Cabinet of Ministers has approved the procedure for providing financial state support to enterprises that are identified as critical to the functioning of the economy during the special period in the defense industry and the procedure for using the funds.
“The procedure for providing financial state support defines the conditions, criteria and mechanism for providing financial state support to enterprises, including those with foreign investments, that participate in the implementation of state targeted programs related to the development of the defense industry by reducing the cost of loans.
It is envisaged that state support for enterprises is provided through the Entrepreneurship Development Fund.
The procedure for the use of funds determines the mechanism for using the funds provided for in the state budget under the budget program “Reimbursement of interest on loans granted to defense industry enterprises involved in the implementation of state target programs related to the development of the defense industry,” Melnychuk said.
Minister of the Ministry of Strategic Industries German Smetanin also added that the interest rate for producers will be 5%, with the rest of the interest paid by the budget. The program already has funding in the amount of UAH 263.4 million by the end of the year.
Loan amount - up to UAH 100 million for working capital for up to 3 years, and up to UAH 500 million for investment projects for up to 5 years
He noted that the funds can be used for the development, manufacture, repair, modernization and utilization of weapons, military and special equipment, ammunition, their components and other military products used to meet the needs of the Defense Forces.
Recall
Yesterday, on November 4, President of Ukraine Volodymyr Zelenskyy held a meeting of the Cabinet of Ministers, where, in particular, they discussed Ukrainian productionof shells, weapons, equipment, electronic warfare, and drones. The results of contracting for the current year and planning for the next year.