The Ukrainian government has launched a preferential lending program to assist domestic arms manufacturers to increase production and accelerate deliveries to the military.
Militarnyi reported that Ukrainian Minister of Strategic Industries Herman Smetanin stated that the Ukrainian government launched on 5 November a preferential lending program for Ukrainian manufacturers of arms and military equipment.
The government expects that under the program, domestic enterprises will be in a better position to produce more arms and deliver them more quickly to the military.
According to Smetanin the interest rate on loans for manufacturers will be at 5%. The state budget will cover the remainder.
The loan amount is up to $2 million in working capital for up 3 years, and up $11 million in investment projects for 5 years.
These funds can be used to develop, produce, repair, modernize, and dispose of weapons, military equipment, special equipment, ammunition and their components, as well as other military-purposed products, in order to meet the requirements of the Ukrainian Defense Forces.
The program is available to those enterprises that have been identified by the Ministry of Strategic Industries as being critical for the economy’s functioning during a certain period in the defense industry.
The program was created in response to the demand for affordable loans by Ukrainian defense industry companies, especially private ones to produce arms and other military equipment. Currently, interest rates on loans are high and make them unaffordable for many companies.
In order to scale up production and advance development, companies require more working capital.
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