In a commentary on the official request of Interfax-Ukraine agency regarding the position of the NBU on the issue of a public initiative launched by the «League of Defense Companies of Ukraine» on the introduction of a special regime for lending to defense industry in the face of the long-term challenges of the hybrid war, the press service of the bank reported that in terms of conditions lending to targeted programs “NBU does not interfere with the operational activities of banks.”

“Banks are independent in their credit policy if they do not contradict the requirements of the current legislation and provide an equitable and competitive environment for all market players. Accordingly, the regulator can not force and has no legal grounds to encourage banks to set a certain level of interest rates on loans in favor of the individual taken by companies or sectors of the economy,” – the commentary received from the agency’s press service said in a statement.

At the same time, the press service also recalls that “the resumption of lending is one of the strategic objectives of the National Bank.”

“For its revitalization, including by reducing the cost of loans, the priority is to reduce the risks for banks by improving the protection of creditors’ rights and solving the problem of” toxic “assets. To resolve these problems, the Verkhovna Rada must adopt a number of bills on the peculiarities of managing state banks, resuming lending, as well as increasing the efficiency of bankruptcy procedures, “the press service reminds.

“In addition, the market expects to submit to the Verkhovna Rada and further parliamentary support the EBRD bill on debt management, which will facilitate the entry of private capital into the market of troubled assets and help restore active lending in Ukraine,” the position of the press service clarifies. NBU on the prospect of introducing a special regime for lending to the defense industry in wartime.

At the beginning of the year, the League of Defense Enterprises of Ukraine, uniting over 50 private Ukrainian defense companies, launched an initiative to revise the approaches of the authorities to the regime of lending to the defense industry during wartime.

March 14, 2018, during the International Specialized Conference in Kiev, the Head of the Board of the League, the chairman of the board of directors of RPA “Practika” Oleg Vysotsky said that at the beginning of the year, “League” appealed to the leadership of the NBU with a proposal to consider the possibility of introducing a special lending regime for the OPC in conditions of war. According to him, the issue is, in particular, the decline of the defense industry to the minimum level of current credit rates in the amount of 18-20% with the lending under the fulfillment of the State Defense Order (GOK) and state defense contracts.

“Why do we get loans from state-owned banks, we have to pay 20% a year if we are executing a state contract for the state,” the Head of the League Board emphasized.

In this regard, O.Vysotsky reminded that the 2017-initiated League and the government-backed new mechanism for pricing defense products in January, which provided for limitations on the profitability of military equipment components by 5%, and 30% for the remaining costs, was canceled by the Cabinet in February. Today, the defense ministry continues to operate the Ministry of Defense introduced in 2016 the limits of profitability in the production of defense products – in terms of components 1%, and for the remaining costs – 20%.

According to him, the idea of ​​introducing a special regime for lending to the Defense Forces in the conditions of war is also supported by the new leadership of the Nabsoviet State Chancellery “Ukroboronprom”.

Established in late 2016, the non-governmental association “League of Defense Companies of Ukraine” unites more than 50 private defense companies of Ukraine. The main focus of the League’s work is to determine the participation of its members in the effective and high-quality re-equipment of the Armed Forces.

According to the Ukrainian military department, in the new conditions in the structure of executors of the GOC about 50% are private defense companies.