The National Bank of Ukraine (NBU) has approved its third package of measures to support lending to the economy, with a particular focus on the defence industry and energy sector.
The new measures expand banks’ ability to assess collateral and the credit risks of enterprises, including those whose assets have been damaged by Russian attacks.
Loans Secured by Government Contracts
One of the key measures is aimed at improving access to financing for enterprises fulfilling contracts for the security and defence sector.
In particular, the NBU has increased the collateral liquidity coefficient for property rights arising from goods supplied and services provided under such contracts from 0.3 to 0.75.
This will enable banks to recognise a larger proportion of the value of such collateral when assessing borrowers’ credit risk.
“Access to financing is essential for the stable operation of Ukraine’s defence industry. Enterprises need to purchase materials and components, maintain production capacity and fulfil contracts to meet the needs of Ukraine’s Defence Forces. It is therefore important that financial instruments take account of the specific characteristics of defence production and create additional opportunities to access credit financing,” stated Anna Gvozdiar, Deputy Minister of Defence of Ukraine.
The measure takes into account the specific nature of defence enterprises’ operations, for which the supply of goods and services under government contracts is an important source of revenue. At the same time, defence manufacturers do not always have sufficient traditional collateral to secure bank financing.
Existing Inventories as Loan Collateral
Another change concerns the use of goods in circulation or processing as collateral for loans.
Until 1 September 2027, banks will be permitted to accept such collateral based on actual inventory balances as of the credit risk assessment date. The new provisions apply to loans with maturities of up to 18 months. The value of the collateral must not exceed the amount stipulated in the relevant agreement.
This will enable enterprises to make greater use of their existing inventories to secure loans and finance ongoing production activities.
Lending to War-Affected Defence Industry Enterprises
Additional measures are aimed at supporting enterprises whose property has been severely damaged, destroyed or is located in mined areas. The NBU has expanded banks’ ability to take projected operating performance indicators into account when assessing enterprises.
This allows banks to assess not only an enterprise’s current financial position but also its prospects for recovery. Combined with debt restructuring, this approach may help enterprises resume operations.
For more details, see the National Bank of Ukraine’s announcement and the relevant NBU resolution.