Government increases defense enterprise credit limit fivefold

The Cabinet of Ministers of Ukraine has expanded the concessional lending program for the defense industry and increased the maximum loan amount for working capital fivefold—from UAH 100 million to UAH 500 million.

Prime Minister Serhiy Koretskyi reported this on September 23. The decision is also published on the Cabinet of Ministers website.

The new terms apply to enterprises fulfilling state defense contracts. They will be able to raise up to UAH 500 million for working capital—funds needed, in particular, for purchasing components and materials, financing production, and fulfilling orders.

The concessional interest rate will range from 5% to 10% per annum depending on the loan amount. In this way, the state expects to increase access to financing for arms manufacturers and accelerate fulfillment of defense contracts.

At the same time, the terms of investment lending remain separate. Defense industry enterprises will be able to obtain loans for development and expansion of production at 5% per annum.

Before the program change, manufacturers could raise up to UAH 100 million for working capital for a term of up to three years. Meanwhile, a separate limit of up to UAH 500 million for up to five years was already in effect for investment projects.

Thus, the current government decision effectively brings the maximum working capital loan size in line with the existing ceiling for investment project financing.

The program will operate through the National Development Institution and will not require an additional increase in the state expenditures allocated for it—financing is to be carried out within the already budgeted funds.

Concessional lending has become one of the instruments of state support for the Ukrainian defense-industrial complex. According to government data as of mid-June 2026, Ukrainian arms manufacturers concluded 162 loan agreements totaling UAH 9.8 billion under the program.

Defense industry enterprises can use loan funds for the development, production, repair, and modernization of weapons, military and special equipment, and ammunition, while investment financing can be used, among other things, for purchasing equipment and expanding production capacity.