Lack of affordable loans for the defense industry

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rosebaby50955
Posts: 49
Joined: Sun Dec 15, 2024 6:28 am

Lack of affordable loans for the defense industry

Post by rosebaby50955 »

. The export of Ukrainian-made weapons is severely complicated (practically prohibited). Today, most Ukrainian defense industry manufacturers can sell their products either to the Ministry of Defense or to volunteers. Neither the first nor the second is lucky under the condition of seriously complicated export of Ukrainian-made weapons - the enterprise is either in a prolonged crisis or actually bankrupt.

If the same farmers can take out “5-7-9” loans, then the defense sector can only dream of such low interest rates. The same applies to investment insurance for military industry enterprises. Today, insurance against military risks is still special database available only to “civilian” companies.

3. Limiting profitability at a level of several percent , which is formally prescribed in contracts or informally "limited" by law enforcement officers. At the same time, for drone manufacturers, the maximum earnings are up to 25%. We see how rapidly unmanned technologies are developing, and the reason is the availability of sufficient earnings to invest in new developments and production.

4. Lack of long-term contracts. The Defense Procurement Agency has declared the start of multi-year contracts, but whether they will be implemented and whether the obligations under them will be fulfilled in the coming years - time will tell. To understand: with contracts for at least 2-3 years, manufacturers are ready to increase their production, for example, of mortars, from 100 to 500 per year.
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