Ukrainian arms manufacturers have secured over 12.5 billion hryvnias in preferential loans, - Ministry of Defence
Over the course of almost two years, Ukrainian defence industry enterprises have signed 211 loan agreements totalling over 12.5 billion hryvnias. Preferential financing enables arms manufacturers to expand their production capacity and ensure that defence contracts are fulfilled.
This has been reported by Censor.NET, citing the Ukrainian Ministry of Defence.
The ministry noted that access to funding is one of the key conditions for rapidly scaling up the production of weapons and military equipment.
The state programme provides for the possibility of defence industry enterprises taking out loans of up to 500 million UAH.
At the same time, manufacturers pay just 5 per cent per annum, with the state covering the remainder of the loan costs.
What can arms manufacturers spend loan funds on?
The programme provides for two main areas of funding.
To carry out investment projects, businesses can obtain loans with a term of up to five years. These funds enable them to develop their production capacity and invest in expanding production.
Loans with a term of up to three years are provided to replenish working capital. This funding is intended to support the day-to-day operations of businesses.
The Ministry of Defence has clarified that the loan funds may be used for the development, manufacture, repair, modernisation and disposal of weapons, military and specialised equipment, ammunition and their components.
"The programme enables manufacturers to finance both the development of production capacity and the day-to-day requirements necessary to fulfil defence contracts," the ministry emphasised.
State support therefore covers both long-term investment in arms production and the funding of the day-to-day needs of Ukrainian defence enterprises.
