Ministry of Finance Approves the Charter of the National Development Institution — Transformation of the Business Development Fund Completed

The Ministry of Finance of Ukraine has approved the Charter of the National Development Institution (NDI). This decision completes the institutional transformation of the Business Development Fund into the National Development Institution. From now on, the NDI operates as a state development finance institution.

“The National Development Institution is being established as a key state financial institution with a non-commercial mandate, designed to ensure access to concessional financing for micro, small and medium-sized enterprises and to implement state support programmes. The Charter and the NDI Development Strategy for 2026–2030, to be approved by the Supervisory Board, lay the foundation for financial autonomy, institutional resilience, and the scaling up of economic recovery programmes. The Ministry of Finance will continue to coordinate the development of the NDI and engage international partners in financing its projects,” said Yurii Drahanchuk, Deputy Minister of Finance of Ukraine for European Integration.

In turn, Andrii Hapon, Chairperson of the Management Board of the National Development Institution, noted: “The activities of the National Development Institution are based on European principles of corporate governance, transparency and accountability. This model creates the prerequisites for the systematic attraction of international financing, deeper cooperation with European Union partners, and the scaling up of financial instruments aimed at the recovery, modernisation and structural development of Ukraine’s economy.”

What is changing

The new Charter defines the NDI as a state, non-profit development finance institution operating under a second-tier model—through banks and other partner financial institutions. The rules governing the NDI’s operations are set out in a dedicated law.

The Ministry of Finance of Ukraine, as the governing authority, has ensured the establishment of a clear legal and institutional framework for the NDI’s activities, aligned with European approaches.

Governance and transparency

The Charter provides for an updated corporate governance system in line with the recommendations of the Organisation for Economic Co-operation and Development (OECD). The key governing body is the Supervisory Board, which includes representatives of the state as well as independent members with international experience.

This model is intended to ensure transparency, financial sustainability and strategic oversight of the institution’s operations.

Strategic role of the NDI

The National Development Institution will focus on:

– supporting micro, small and medium-sized enterprises;
– implementing state financial programmes, including during martial law;
– attracting donor and international funding;
– preparing for direct access to European Union financing.

The new Charter also provides the basis for implementing the NDI Development Strategy for 2026–2030, which envisages expanding business access to finance and supporting Ukraine’s economic recovery.

For reference, the NDI commenced operations on 1 January 2026 in accordance with the Law of Ukraine “On the National Development Institution.” The Ministry of Finance is authorised to exercise the management of the state’s corporate rights in the NDI’s authorised capital.