A New Financial Architecture for Recovery
On October 8, the Verkhovna Rada of Ukraine adopted in the second reading Draft Law No. 11238 “On the National Development Agency” (NDA) — a landmark reform establishing a state specialized institution to channel investment into Ukraine’s reconstruction and economic transformation.
According to Danylo Hetmantsev, Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy, the NDA will function as a “bank of banks”, operating through financial institutions to mobilize private capital and direct it toward the recovery of the economy.
Key Functions and Objectives
The adopted law outlines several critical directions for the new agency:
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Attracting private investors’ funds and channeling them into recovery projects through loans, guarantees, and equity participation.
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Overcoming financing barriers for relocated enterprises, frontline-region businesses, and companies owned by internally displaced persons.
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Supporting small and medium-sized enterprises (SMEs) operating under high-risk or crisis conditions but with viable development potential.
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Providing access to finance for individuals and businesses lacking adequate market-based credit options.
Military-Risk Insurance Program
One of the most anticipated provisions of the law is the launch of a military-risk insurance program for businesses and citizens in front-line regions — a measure long requested by Ukrainian entrepreneurs.
The mechanism will allow enterprises to secure loans and investments against war-related losses, thereby reducing financing costs and enabling new projects in high-risk zones.
Enhanced Role of the Export Credit Agency (ECA)
The legislation also strengthens the Export Credit Agency’s toolkit by expanding its capacity to insure and reinsure loans of Ukrainian businesses — including against military and political risks — related to investments in the processing industry and export-oriented infrastructure.
This alignment ensures that Ukrainian exporters can continue expanding despite wartime uncertainty.
Strategic Mission of the NDA
The National Development Agency will serve as a central financial institution with a clear recovery mandate — implementing lending programs, co-financing infrastructure and industrial projects, and coordinating investment flows within the framework of Ukraine Facility and EU accession funding mechanisms.
Its establishment marks a strategic shift toward a public-private reconstruction model, designed to combine state guarantees with private initiative to rebuild Ukraine’s economy.
