50 Ukrainian defence companies have received 2.7 billion hryvnias in preferential loans

Over the nine months of the state programme of preferential loans for defence industry manufacturers, 50 companies have received loans totalling 2.7 billion hryvnias, the Ministry of Defence reported. Another 23 applications from defence enterprises for over 2.5 billion hryvnias have already been approved for issuance, and 57 are at various stages of consideration.

Most applications for preferential loans come from manufacturers of unmanned aerial vehicles and their components.

Private sector manufacturers who lack working capital to improve or scale production can receive:

• up to 100 million hryvnias for working capital for a period of up to three years;
• up to 500 million hryvnias for investment projects for a period of up to five years.

The interest rate for defence industry enterprises is 5%, with the remainder compensated by the state.

The funds received can be used to expand operational activities, purchase new equipment and components, support working capital for the development of new models of weapons and military equipment, and launch them into mass production.

To participate in the programme, the manufacturer must apply to one of five banks that meet the security criteria: Ukreximbank, Oschadbank, MTB Bank, FUIB, and Bank Credit Dnipro.

It is also worth noting that the day before, the parliamentary committee approved the second reading of the bill on the special legal regime of Defence City.