The Financial Committee of the Verkhovna Rada has recommended that parliament approve in the second reading bill No. 11238, which provides for the establishment of a National Development Institution (NDI). The idea is that this structure will serve as the Ukrainian equivalent of the German reconstruction credit organization, Kreditanstalt für Wiederaufbau (KfW), and will have the status of a specialized institution with the functions of a “bank of banks.”
This is reported by Finway
Main Goals and Functions of the National Development Institution
The primary task of the NDI will be to implement lending programs aimed at the recovery and structural transformation of Ukraine’s economy. The institution will particularly focus on addressing financing issues for relocated businesses, supporting enterprises in frontline regions, internally displaced persons, as well as projects with a higher level of risk.
Support for Business and Improvement of Financial Instruments
The bill envisions attracting private investments to direct them towards economic recovery, with particular attention to small and medium-sized enterprises that have development potential but find themselves in difficult circumstances. It is anticipated that various financial instruments will be used to support businesses, facilitating their faster recovery and modernization.
Additionally, the bill proposes to enhance the mechanisms of the Export Credit Agency, particularly regarding insurance and reinsurance against war and political risks. This will create additional guarantees for Ukrainian enterprises operating in foreign markets and stimulate export development.
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.