Over the year of the preferential lending program, Ukrainian defense industry manufacturers received 80 loans totaling almost 5 billion hryvnias. This was reported by the Ministry of Defense of Ukraine, according to UNN.
Details
It is stated that currently, 16 more applications from defense enterprises for almost UAH 700 million have been approved for issuance. Also, 52 applications for over UAH 4 billion are at various stages of consideration.
This is an effective support tool that helps our manufacturers scale up faster and move from development to serial production. The state creates conditions for the defense industry sector to continuously perform two important tasks – providing more Ukrainian weapons for the Security and Defense Forces and forming a sustainable defense economy.
It is stated that the affordable lending program for Ukrainian manufacturers in the defense industry is implemented as a tool to support enterprises critical for the economy and defense capabilities. Thus, private sector manufacturers who lack working capital to improve and scale up production capacities can receive:
- up to UAH 100 million for working capital – for a period of up to 3 years;
- up to UAH 500 million for investment projects – for a period of up to 5 years.
At the same time, the interest rate for defense industry enterprises is 5%, the rest is compensated by the state.
"Loan funds can be used to modernize production, purchase new equipment and components, expand operational activities, as well as support the development of new models of weapons and military equipment and their launch into serial production," the Ministry of Defense said.
Recall
The Ministry of Defense of Ukraine reported the admission to operation of over a hundred new models of domestically produced weapons and military equipment over the past month. Among the novelties are unmanned aerial systems, electronic warfare systems, large-caliber artillery shells, and more.