The Verkhovna Rada of Ukraine has approved bills aimed at creating the National Development Institution (NDI), known as the “bank of banks.” According to Danylo Getmantsev, chairman of the parliamentary Committee on Finance, Tax and Customs Policy, the new institution is designed to address the problems of lending to high-risk businesses, including relocated businesses, enterprises in front-line areas, military-industrial facilities, and high-risk projects.
On June 18, MPs supported bills No. 11238 and No. 11239, which regulate the activities of this institution. Hetmantsev emphasized that the NUR will receive access to funds from private investors to finance projects to restore and develop the Ukrainian economy, in particular through various financial instruments that will be provided to support small and medium-sized businesses in difficult circumstances, but with the potential for restoration and growth.
Previously, in May of this year, the Verkhovna Rada Committee on Finance, Tax and Customs Policy had already supported the relevant draft laws aimed at creating a National Development Agency.
Individuals will also be able to receive funding from the National Development Agency (NDA) provided they meet certain criteria set out in the terms of the support programs. The main requirements include the following:
- Be a tax resident of Ukraine.
- Not being able to obtain financing on acceptable terms due to imperfection or underdevelopment of market mechanisms, a 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.
