UK Expands Defense Export Loans to £10 Billion, Supporting Industry Growth

The United Kingdom has announced a £2 billion increase in lending capacity through the UK Export Finance (UKEF) to support defense-related exports. This initiative aims to strengthen British defense industries by providing loans to allied governments for purchasing UK-made defense equipment. The increased lending capacity will bring the UKEF's total allocation for defense-related loans to £10 billion, up from £8 billion. The funds, equivalent to 2.38 billion euros or 2.6 billion dollars, will primarily support the export of missiles, aircraft, and armored vehicles, enhancing the competitiveness of British defense manufacturers. This move, announced by Prime Minister Keir Starmer and Finance Minister Rachel Reeves, aligns with the UK government's broader strategy to bolster defense spending, targeting 2.5% of GDP by 2027 and potentially 3% in the subsequent parliamentary term. It also follows recent agreements to supply advanced military equipment, including 5,000 air defense missiles and drones produced at the Thales Belfast factory, to Ukraine.