As of January 1, 2026, the National Development Institution (NDI) officially commenced its operations in Ukraine – a new state financial institution established on the basis of the Entrepreneurship Development Fund (EDF). It is designed to be a key driver for supporting and developing micro, small, and medium-sized businesses by providing access to preferential financing through a network of partner banks.
This is reported by Finway
A New Generation Financial Institution
The NDI operates as a financial organization with a special status, focused on implementing state business support programs. The institution is not aimed at making a profit but operates on the principle of a “second-tier institution.” The management of the National Development Institution is conducted autonomously, and its activities are regulated by the National Bank of Ukraine under specially adapted rules.
According to the newly adopted law, the NDI can now directly collaborate with the European Union, paving the way for attracting funds from European programs to support Ukrainian entrepreneurs. The bill was developed in close cooperation with the Ministry of Finance, the EDF, the German development bank KfW, consultants from Deloitte, and in agreement with the World Bank and the EU.
“The Entrepreneurship Development Fund, which, among other things, implements the state program ‘Affordable Loans 5-7-9%’ and has proven its effectiveness in ensuring economic stability and growth, has become the platform for launching the National Development Institution and further integrating Ukraine into the European financial ecosystem,” the statement said.
Transformation of the Banking System and New Prospects
The implementation of the National Development Institution signifies a significant change in the structure of Ukraine’s banking sector: instead of a two-tier system, a three-tier system will now operate. The NBU will continue to implement monetary policy, while the NDI will be responsible for ensuring the availability of financing for priority sectors of the economy through Ukrainian banks.
The main mission of the NDI is to provide Ukrainian entrepreneurs with the financial resources necessary for the recovery and growth of the economy. The institution will also administer state support programs, including the ‘Affordable Loans 5-7-9%’ program, which has already established itself as an effective tool for economic support.
“The National Development Institution is intended to become a central element of the financial infrastructure for Ukraine’s recovery, combining state economic policy, international partnerships, and real financial opportunities for Ukrainian businesses,” the ministry noted.