NBU expands lending to the defense industry: what schemes will be implemented

During a meeting with bank representatives, NBU Deputy Head Dmytro Oliynyk and Director of the Integrated Supervision Department for Banks Andriy Kotiuzhynskyi discussed issues related to lending to Ukrainian manufacturers of the defense-industrial complex, the prerequisites for increasing the volumes of such financing, as well as improving the relevant regulatory framework and requirements.

Dmytro Oliynyk emphasized that supporting the growth of lending to the Ukrainian defense-industrial complex is a priority task for the NBU and is an important part of the crediting development strategy. The sector has great potential, especially in the export market.

'Banks can finance Ukrainian manufacturers of the defense industry, relying on the experience of how it has already been implemented in the fuel and energy sector,' noted Dmytro Oliynyk.

Challenges and Solutions

Participants discussed the experiences and challenges facing banks willing to lend to the defense complex. Issues with risk assessment, the complexity of financing long-term and capital-intensive projects, securing collateral, regulatory restrictions, and limitations at the level of the banks' own credit policies were among the topics discussed.

It was agreed to develop consortium lending to share risks and ensure the stability of financing. The use of state guarantee mechanisms and attracting the potential of the Export Credit Agency is important.

Discussions between the National Bank of Ukraine and banks concern issues of lending to Ukrainian manufacturers of the defense-industrial complex. Measures aimed at developing this sector include improving the regulatory framework and supporting banks in financing projects in this field.