MIT and NDB open new guarantee program to support Ukraine's reconstruction

The aim of the Ukraine Recovery Guarantee is to support the recovery and economic development of Ukraine and to facilitate companies' financing of investments in the country. The program will focus on strategic sectors of the Ukrainian economy, including energy, transport, agri-food industry, strategic investments and industries, critical raw materials, human capital and the social sector, green transformation, and dual-use goods.

"Czech companies have the experience and technologies in energy, transport and industry that Ukraine needs for its reconstruction. In order be able to participate in specific projects, it is essential to secure their financing. This is exactly what the new guarantee program will help with. By sharing the risk, it will make it easier for banks to provide investment loans in Ukraine and thus open up opportunities for Czech suppliers. We want our support for Ukraine's reconstruction to bring concrete results and, at the same time, strengthen long-term business relationships" said 1st Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček.

The total allocation of the guarantee program is EUR 125 million (approximately CZK 3 billion), which is expected to support guaranteed loans in the amount of over EUR 156 million (approximately CZK 3.9 billion) and help implement investments in a total value of approximately EUR 195 million (approximately CZK 4.8 billion). The guarantee facility will thus enable public funds to mobilize additional private finance, including loans from commercial banks and equity capital of Ukrainian entities, and thus support investments that are crucial for the reconstruction and further development of Ukraine.

"Since the first days of Russian aggression, the Czech Republic has stood by Ukraine, and our assistance is gradually shifting from an immediate humanitarian and military support to the long-term reconstruction and development of Ukraine. The Guarantee Program for the Reconstruction of Ukraine, prepared in cooperation with the European Commission, the Ministry of Industry and Trade and the National Development Bank is a tool for foreign development cooperation. Its aim is to help mobilize financing for projects focused on the reconstruction and development of Ukraine with the involvement of private capital. I have no doubt that this program will also be an opportunity for Czech companies to involve their technology and know-how in the reconstruction of Ukraine and will create the conditions for a broader economic cooperation in the future" added Tomáš Nidetzký, Chairman of the Board of Directors of the National Development Bank.

The program is funded by a combination of European and national resources, which serve to share the risk with partner banks. The European Union has provided a guarantee of EUR 100 million through the Facility for Ukraine, specifically from its Pillar II - Investment Framework for Ukraine, with another EUR 25 million being added by the Ministry of Industry and Trade of the Czech Republic. Thanks to this, banks can provide credit financing to projects of Ukrainian companies, which could otherwise be difficult to finance due to the higher risk.

As part of the program, the NDB will provide individual bank guarantees to Ukrainian partner banks or CEB, which will then provide loans to Ukrainian entities, i.e., the final recipients of financing, on their basis.

The standard coverage rate will be 80% of the outstanding loan principal and eligible interest. The amount of supported loans will range from EUR 1 million to EUR 39 million .

"The Confederation of Industry and Transport welcomes the launch of a new guarantee program to support investment and reconstruction in Ukraine. The reconstruction and modernization of Ukraine represent huge business opportunities for Czech companies. Investments in Ukrainian infrastructure, energy, water management, healthcare and other key sectors can bring long-term benefits and create new markets for Czech products and services. The Confederation of Industry is ready to cooperate with the government, export institutions and companies so that the potential of Czech business in Ukraine is transformed into real projects, contracts and long-term partnerships to the benefit of both countries" says Radek Špicar, Vice President of the Confederation of Industry and Transport of the Czech Republic .

The program is open for applications from September 10, 2026 and is designed for three years, or until the total allocation is exhausted. A client interested in financing will apply for the NDB guarantee after having pre-negotiated loan financing with their financing bank.

Further details about the Ukraine Restoration Guarantee program and conditions for applicants can be found on the NDB website.