Rada adopts law on creation of National Development Institution
At its meeting on Wednesday, October 8, the Verkhovna Rada adopted at the second reading bill No. 11238 on the creation of the National Development Institution (NDI), which is analogous to the German KfW (Kreditanstalt für Wiederaufbau - Credit Institution for Reconstruction), announced Danylo Hetmantsev, head of the parliamentary finance committee.
According to information published by Hetmantsev on his Telegram channel, 280 MPs supported the initiative.
"The National Development Institution (NDI) is a specialized state organization with the status of a 'bank of banks' and a clear mandate for the restoration and structural transformation of the economy. Its main mission is to implement lending programs for the country's recovery," Hetmantsev recalled.
He added that the bill is aimed at addressing the financing of relocated businesses, enterprises in frontline regions, businesses of internally displaced persons, and high-risk projects.
Hetmantsev noted that the document also takes into account the attraction of private investment funds and their allocation to economic recovery through various financial instruments, as well as support, above all, for small and medium-sized businesses that have found themselves in difficult circumstances but have the potential for recovery and development.
In addition, the possibility of supporting other categories of persons (including individuals) who do not have access to financing on adequate terms or who have difficulty accessing it due to the crisis, imperfect market mechanisms, or other circumstances is provided.
The draft law provides for the improvement of such a tool of the Export Credit Agency (ECA) as insurance and reinsurance, including against military and/or political risks, of loans to Ukrainian business entities related to investments in the creation of facilities and infrastructure necessary for the development of the processing industry and the export of goods (works, services) of Ukrainian origin.
In addition, the bill allows the Export Credit Agency (ECA) to participate in state war risk insurance programs and compensation programs in the event of damage resulting from military action.
