The Ministry of Defense of Ukraine is preparing changes to the regulatory framework that will allow defense companies to account for loan interest when calculating the cost of production. This step aims to promote the increase in weapon production and enhance the financial stability of enterprises in the sector.
This is reported by Finway
Financial Support for the Defense Sector
In the process of developing legislative changes, the Ministry of Defense is closely collaborating with the Ministry of Finance and state banks. Representatives of these institutions discussed ways to strengthen financial support for the defense industry, particularly through credit mechanisms backed by state guarantees. State banks have already begun working within a consortium that provides loans to defense enterprises to expand production.
Implementation of the “Danish Model” and New Prospects
Among the key issues is the implementation of the so-called “Danish model,” which involves direct contracts between allied countries and Ukrainian manufacturers, investment in Ukraine’s defense companies, and the creation of joint ventures with foreign partners. State banks are expected to take a more active role in financing the defense-industrial complex.
“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.
The Ministry of Defense, together with the Ministry of Finance, is already working on proposals from state banks aimed at facilitating more effective mobilization of financial resources. The planned changes will significantly increase the volume of weapon production and strengthen the country’s defense capabilities in the near future.