The Ministry of Defense is developing innovations that will allow enterprises in the defense industry to include interest on loans in the cost of manufactured products. According to the head of the ministry, Denys Shmyhal, this step is expected to significantly simplify the operations of weapon manufacturers.
This is reported by Business • Media
Financial support and international cooperation
The issue of enhancing financial support for the defense sector was discussed among representatives of the Ministry of Defense, the Ministry of Finance, and state banks. One of the main topics was the implementation of the so-called “Danish model,” which involves direct contracts between allied states and Ukrainian manufacturers, attracting investments into domestic defense companies, and creating joint ventures with foreign partners.
The Ministry of Defense is preparing changes that will allow defense enterprises to include loan interest in the cost of production, noted the head of the ministry, Denys Shmyhal. According to him, this is expected to significantly ease the work of defense enterprises.
Expansion of funding and expected effects
State banks have already begun operations within a consortium that provides loans to defense sector enterprises under state guarantees. Financial institutions are expected to take an even more active role in financing defense industry enterprises. At the same time, the Ministry of Defense, together with the Ministry of Finance, is promptly reviewing proposals from banks aimed at optimizing production financing.
The introduction of new rules, according to government forecasts, will significantly increase the volume of weapons production and enhance Ukraine’s defense capabilities.