Ukrainian banks signed a record loan agreement for UAH 21.5 billion to support the defense industry
Ukrainian banks have joined forces to finance the defense-industrial complex, concluding the largest consortium loan agreement in the history of the financial market. This was reported by the NBU.
The consortium includes six state-owned and private banks, with the state bank acting as the organizing bank. The total amount of financing is UAH 21.5 billion, the term of the loan agreement is three years, and the security is a state guarantee.
The funds raised will be used to produce products by a defense-industrial complex enterprise specializing in the manufacture of military goods. The government emphasizes that the agreement will contribute to strengthening Ukraine’s defense capabilities, developing the domestic defense industry, and reducing dependence on imported weapons.
Consortium lending allows several banks to jointly finance a large project with risk sharing and significant resources, which makes it an effective mechanism for implementing large-scale strategic initiatives.
The Minister of Defense noted that the signing of the agreement was the result of more than four months of negotiations between the Ministry of Defense, the National Bank, and commercial banks on creating an effective mechanism for financing the defense industry:
“The banking sector is uniting to support Ukrainian arms manufacturers. This is the result of work that lasted more than four months – negotiations between the Ministry of Defense with the National Bank and commercial banks on the creation of an effective mechanism for lending to the defense-industrial complex, Shmyhal emphasized.
