President of Ukraine Volodymyr Zelenskyy, on October 27, signed a law on the National Development Institution — a specialized state bank whose main task will be lending to projects for the reconstruction of Ukraine. This is stated on the Verkhovna Rada of Ukraine’s website.
This institution will operate under the “bank of banks” model and finance areas that private capital considers too risky.
What does the law provide for?
- overcoming problems with financing relocated businesses, enterprises in frontline regions, businesses of internally displaced persons, as well as projects with an increased level of risk;
- attracting funds from private investors and directing them to the restoration of the economy through various financial instruments;
- supporting, first of all, small and medium-sized businesses that have found themselves in difficult conditions, but have the potential for restoration and development.
Separately, the possibility of supporting other categories of persons (including individuals) who do not have access to financing on adequate terms, or whose access is complicated by the crisis, market imperfections, or other circumstances, is provided.
Separately, the law contains provisions that launch a military risk insurance program in frontline regions, which has long been requested by businesses and ordinary citizens.
