Memorandum on Financing the Defense-Industrial Complex
In a move spearheaded by the National Bank of Ukraine (NBU), 23 banks have signed a Memorandum aimed at broadening access to funding for enterprises within the defense-industrial complex (DIC). This agreement establishes a structured, practical framework featuring segmented participation models tailored to different banks and borrowers, with the goal of ensuring uninterrupted production in this critical sector.
The signing reflects a commitment among banks to prioritize DIC financing within their strategies, risk appetites, product offerings, business structures, and internal processes. According to available data, the volume of loans and guarantees issued in this sector grew by over 60 billion UAH in 2025, signaling dynamic expansion and underscoring the sector's increasing importance.
Bank Participation Models
The Memorandum outlines four distinct participation models for banks:
- Consortium or syndicated financing for large-scale projects;
- Direct financing for manufacturers of weapons, ammunition, and military equipment;
- Financing for dual-use goods;
- Financing for small and medium-sized enterprises in the DIC under open contracts.
“We are ready to take the steps expected by the National Bank, and we are already doing so: joining the standardization of documents for consortium lending, providing necessary clarifications, and calibrating our regulatory requirements, including those for credit risk assessment.” – Andriy Pyshnyi
Notably, banks are aiming to partially move away from 'hard collateral,' a shift that could significantly improve financing accessibility for DIC enterprises.
“DIC financing is growing dynamically. According to survey data, the volume of loans and guarantees issued in the sector increased by over 60 billion UAH in 2025. And this is just the beginning.” – Andriy Pyshnyi
This agreement between the banks and the NBU marks a crucial step in supporting Ukraine's defense-industrial complex, particularly amid heightened competition and shifts in the global security landscape. Expanding access to financing can stimulate investment in innovation and production modernization, thereby strengthening the country's defense capabilities. It also represents a significant milestone in developing the financial infrastructure needed to support strategic economic sectors.
As the defense sector receives increased financial support, it's essential to consider the broader economic implications. Recently, the National Bank of Ukraine reported a record profit, with a significant portion expected to contribute to the state budget. This development may further bolster efforts to enhance funding mechanisms for critical industries, making it important to stay informed about how these financial trends interconnect. For more details, see the full story on the record profits of Ukraine's Central Bank.