The Financial Committee of the Verkhovna Rada of Ukraine has recommended that the parliament adopt draft law No. 11238 in its second reading, which proposes the establishment of a National Development Institution (NDI) – a specialized institution that will serve as Ukraine’s equivalent of the German Kreditanstalt für Wiederaufbau (KfW).
This is reported by Business • Media
Purpose of Establishing the NDI and Its Objectives
The introduction of the National Development Institution aims to implement an effective mechanism for financing structural transformation and economic recovery. The establishment of the NDI will enable the implementation of lending programs aimed at rebuilding the country, as well as provide effective support for businesses in challenging conditions.
The new draft law addresses the issue of access to financing for relocated businesses, enterprises in frontline regions, businesses of internally displaced persons, and projects with a higher level of risk. Attracting private investments and channeling them through various financial instruments will be a significant step towards economic recovery.
The NDI will be a specialized institution with the status of a “bank of banks” and a clear mandate for recovery and structural transformation of the economy. Its main mission is to implement lending programs for the reconstruction of the country.
Support for Small and Medium Enterprises and New Instruments
The draft law emphasizes support for small and medium enterprises that have faced the greatest difficulties but still possess development potential. Additionally, it plans to enhance the operations of the Export Credit Agency, particularly improving insurance and reinsurance mechanisms, including protection against military and political risks.