Ukraine's Ministry of Finance announced that the Parliament of Ukraine has passed draft law No. 11238 on establishing a National Development Institution (NDI), positioning the Business Development Fund (BDF) as the platform for a revamped system of financial support for small and medium-sized enterprises (SMEs). The NDI is intended to expand SMEs’ access to concessional lending delivered through partner banks and to administer state business support programmes. Under the adopted framework, the NDI will be a special-status, non-profit “second-tier” financial institution with autonomous governance and regulation adapted by the National Bank of Ukraine, with an operating model aligned to the practices of Germany’s development bank KfW. The Ministry said the draft law was developed with the involvement of the Ministry of Finance, the BDF, KfW and Deloitte, and was coordinated with the World Bank and the European Union; it was supported by 280 members of Parliament. The update also referenced associated funding, including a EUR 40.5 million grant agreement signed with KfW at URC 2025 and an additional USD 100 million from the World Bank expected to support targeted business groups.
Ministry of Finance (Ukraine) 2025-10-08
Ukraine's Ministry of Finance reports Parliament passing law to establish a National Development Institution to channel concessional SME lending
Ukraine's Ministry of Finance announced the passage of draft law No. 11238, establishing a National Development Institution (NDI) to enhance financial support for small and medium-sized enterprises (SMEs) via the Business Development Fund. The NDI will operate as a special-status, non-profit financial institution with governance aligned to Germany’s KfW, supported by a EUR 40.5 million grant from KfW and an anticipated USD 100 million from the World Bank.