The Verkhovna Rada supported in the second reading draft law No. 11238, which provides for the establishment of a National Development Institution — a specialized state bank that will become a key instrument for financing reconstruction projects in Ukraine. The main goal of this financial institution is to stimulate economic recovery by attracting additional resources and supporting businesses operating under particularly challenging conditions.
This is reported by Finway
Features of the New Banking Institution
The planned institution will operate on a “bank of banks” model — similar to the German Kreditanstalt für Wiederaufbau (KfW). This means that the bank will not directly lend to thousands of enterprises but will provide financial resources and guarantees to commercial banks. In turn, these banks will finance businesses through specially designed programs.
In addition, the document includes provisions for launching a military risk insurance program for enterprises in frontline regions — this is intended to enhance the availability of financing for businesses operating under heightened threats.
Areas of Support and Strategic Objectives
The draft law emphasizes addressing several key tasks:
- Financing relocated businesses and enterprises in regions close to the front.
- Attracting private investors to restore the country’s economic potential.
- Supporting small and medium-sized enterprises that have faced significant challenges but demonstrate the ability to recover and grow.
“The status of a ‘bank of banks’ means that the institution will not directly work with thousands of entrepreneurs. Instead, it will provide financial resources and guarantees to commercial banks, which, in turn, will lend to businesses under defined programs.”
It is anticipated that the new state development bank may be formed based on the already existing Entrepreneurship Development Fund, which will simplify the organizational process and allow for a swift start to full operations.