Over 10 Billion Hryvnias for Defense Production: Ministry of Defense Launches Large-Scale Financial Support
Ukrainian defense industry enterprises have received 167 preferential loans totaling over 10 billion UAH within the framework of a state support program implemented by the Ministry of Defense of Ukraine.
According to the Ministry of Defense, 12 of these loans have already been fully repaid by the enterprises. The preferential lending program is aimed at helping arms manufacturers develop and scale production. Defense industry enterprises can attract funds for the implementation of investment projects and replenishment of working capital.
In particular, manufacturers can receive up to 500 million UAH for a term of up to five years for investment projects or up to 100 million UAH for a term of up to three years to finance current activities.
The received funds may be directed towards the development, production, repair, modernization, and disposal of weapons, military and special equipment, ammunition, and their components.
Under the program conditions, defense industry enterprises pay a preferential interest rate of 5% per annum, while the state compensates the remaining credit servicing costs.
The Ministry of Defense noted that such support is part of a comprehensive policy for the development of the Ukrainian defense-industrial complex. In addition to preferential lending, the state also uses financial leasing mechanisms and the special legal regime Defence City.
As previously reported by the "Judicial and Legal Newspaper", Ukraine has achieved an important result in developing its own defense industry and has reached a level of technological weapons production that in the long term may surpass Russia’s capabilities.
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