National Development Institution launched in Ukraine

On January 1, 2026, the National Development Institution (NDI), a state financial institution created on the basis of the Entrepreneurship Development Fund (EDF), started operating in Ukraine.

The relevant changes are enshrined in the Law of Ukraine "On the National Development Institution" No. 4622-IX of October 8, 2025, which entered into force on October 29, 2025, the Ukrainian News agency reports.

The law was developed in cooperation with the Ministry of Finance, the State Development Fund, KfW and Deloitte consultants, as well as agreed with the World Bank and the European Union.

The Entrepreneurship Development Fund, which, in particular, implements the state program "Affordable Loans 5-7-9%" and has proven its effectiveness in ensuring economic sustainability and growth, has become a platform for launching the National Development Institution and further integration of Ukraine into the European financial ecosystem. The law also paves the way for direct cooperation between the NDI and the EU, which will allow attracting funding from European programs to support Ukrainian entrepreneurs.

The model of the National Development Institution is in line with the best European practices, in particular the KfW approach, which combines institutional autonomy and strategic partnership with the Government.

The NDI will operate as a financial institution with a special status, based on the principle of a "second-tier institution", without the goal of making a profit. With the adoption of the law on the NRA, not only the institution itself was transformed, but also the banking system was transformed from a two-tier to a three-tier system, in which the NBU will implement monetary policy, and the NDI will ensure the availability of financing for the Government's priority sectors of the economy through Ukrainian banks.

The NDI's key mission is to ensure that micro, small and medium-sized businesses have access to preferential financing through partner banks. The institution has autonomous management, adapted regulation by the NBU, and the authority to administer state business support programs.

The law defines a broad mandate of the National Development Institution, in particular:

• provision of financial services (lending, guarantees, dealer activities);
• provision of grants and other types of free and non-refundable financial assistance;
• compensation of interest rates, principal and other payments on loans, leasing, factoring, guarantees, as well as compensation of insurance premiums and contributions;
• development, support and administration of state, regional and local programs, international technical assistance projects, initiatives of international financial organizations, foreign states and the European Union;
• mediation in the distribution of funds between financial institutions within the framework of programs and projects;
• assessment of the effectiveness and analysis of the impact of programs, investment research and financial analysis;
• support for educational activities;
• investment activities.

As the Ukrainian News agency earlier reported, the National Development Institution is intended to become a central element of the financial infrastructure for Ukraine's recovery, combining state economic policy, international partnership and real financial opportunities for Ukrainian business.