The Law on the National Development Institution

January 1, 2026 the Law of Ukraine No. 4622-IX takes effect on the National Development Institution, which will become a state specialized institution for the restoration and structural transformation of the economy.

The operation model of the NDI is based on the German development bank KfW, combining management autonomy and strategic partnership with the Government. The institution will have the status of a “bank of banks” and will receive simplified regulation from the National Bank of Ukraine, allowing it to effectively administer state business support programs.

Key Areas of Activity and NDI Instruments

Financial support for small and medium-sized enterprises will be provided in the form of loans, guarantees, grants, and non-repayable assistance.
The institution will develop and implement development projects at state, local, and international levels to stimulate economic growth.
Funding for NDI activities will be provided through state and local budgets, as well as the involvement of international technical and financial assistance.
The minimum state share in the institution’s share capital is legally fixed at no less than 51%.

Improvement of Export Credit Agency Instruments

The adopted Law provides for the expansion of ECA functions in the insurance and reinsurance of loans for Ukrainian companies investing in infrastructure facilities;
New mechanisms will cover war and political risks, which is critically important for the development of the processing industry;
Support is focused on stimulating the export of goods of Ukrainian origin and attracting investment into the real sector of the economy.

The changes are aimed at creating a powerful financial instrument for the country’s recovery, supporting Ukrainian producers, and ensuring stable and predictable conditions for attracting international investment into economic transformation.

We will closely monitor further developments in this area and will report on them in future Legal News.