Ukraine’s National Development Institution begins operations to finance reconstruction

According to Ukrinform, this was reported by the Ministry of Finance of Ukraine.

It is noted that the National Development Institution was created on the basis of the Entrepreneurship Development Fund (EDF). The relevant changes are enshrined in the Law of Ukraine “On the National Development Institution” No. 4622-IX of October 8, 2025.

The NDI's operating model is in line with best European practices, combining institutional autonomy and strategic partnership with the government. The institution will operate as a non-profit “second-tier” financial institution, ensuring the availability of financing for priority sectors of the economy through Ukrainian banks.

“Its key mission is to ensure access to preferential financing for micro, small, and medium-sized businesses through partner banks. The institution has autonomous management, adapted regulation by the NBU, and powers to administer state business support programs,” the ministry noted.

The law defines a wide range of powers for the institution, including the provision of loans, guarantees, grants, interest compensation, and insurance premiums, support for state and international programs, analysis of project effectiveness, investment activities, and support for educational events.

The Ministry of Finance assured that the NDI should become a central element of Ukraine's financial recovery infrastructure, combining state economic policy, international partnerships, and real financial opportunities for Ukrainian businesses, providing, in particular, systematic support for SMEs.

As reported by Ukrinform, on October 8, the Verkhovna Rada adopted in the second reading draft law No. 11238, which provides for the creation of a National Development Institution to finance the reconstruction of the country's economy.

Photo: mof.gov.ua