Ukraine launches low-interest loan program to boost arms production

November 5, 2024

By Ukraine

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Ukrainian Minister of Strategic Industries Herman Smetanin said that on 5 November, the Ukrainian government launched a preferential loan program for Ukrainian arms and military equipment manufacturers, Militarnyi reports.

Under the program, the government anticipates that domestic enterprises will be able to produce more weapons and deliver them to the military more quickly.

According to Smetanin, the interest rate for manufacturers will be 5%, with the state budget covering the remaining interest.

The loan amount will be up to $2 million for working capital for up to 3 years and up to $11 million for investment projects for up to 5 years.

These funds can be used for the development, production, repair, modernization, and disposal of weapons, military and special equipment, ammunition, their components, and other military-purpose products required to meet the needs of the Ukrainian Defense Forces.

The program will be available to enterprises that the Ministry of Strategic Industries has already identified as critical for the functioning of the economy during a particular period in the defense sector.

The program was developed in response to the need for affordable loans for Ukrainian defense industry enterprises, especially private ones, to produce arms and military equipment. Currently, loan interest rates are high, making them inaccessible for many companies.

As a result, companies need more access to working capital for advanced developments and scaling up production.

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