The Verkhovna Rada of Ukraine approved draft laws aimed at creating the National Development Institution (NDI), known as the "bank of banks". According to the announcement of Danylo Hetmantsev, the head of the Parliamentary Committee on Finance, Tax and Customs Policy, the new institution is designed to solve the problems of lending to high-risk businesses, in particular, relocated businesses, enterprises in front-line territories, military-industrial facilities and projects with a high level of risk.
On June 18, people's deputies supported draft laws #11238 and #11239, which regulate the activities of this institution. Hetmantsev emphasized that the NUR will get access to the funds of private investors to finance projects for the recovery and development of the Ukrainian economy, in particular through various financial instruments that will be provided to support small and medium-sized enterprises in difficult circumstances, but with the potential for recovery and growth.
Previously, in May of this year, the Verkhovna Rada's Committee on Finance, Tax and Customs Policy already supported the relevant draft laws aimed at creating a National Development Institution.
Individuals will also be able to receive funding from the National Development Agency (NDA) if they meet certain criteria determined by the terms of the support programs. The main requirements include the following:
- To be a tax resident of Ukraine.
- Not being able to obtain financing on acceptable terms due to imperfection or underdevelopment of market mechanisms, crisis or other circumstances.
The NUR already takes into account the experience of the Credit Institution for Reconstruction (Kreditanstalt für Wiederaufbau, or KFW), which was established in post-war Germany in 1948 as part of the Marshall Plan.
