Many banks are still cautious about financing defense projects. With this new program, EGAP will insure investment loans, helping reduce the risk for banks. Thanks to a CZK 500 million capital boost, EGAP will be able to insure loans worth up to CZK 5 billion.

The goal is to strengthen the country’s defense industry, especially small and medium-sized firms that often have limited access to financing. At the same time, the program supports economic growth and export potential by improving companies’ ability to invest in production, research, and development.

The new support is part of a broader government strategy to make the Czech economy more competitive and self-sufficient in key areas. It also reflects the current security situation in Europe, where countries are looking to boost their defense capabilities and reduce reliance on foreign suppliers.

EGAP has long supported Czech exporters by insuring deals in more than 130 countries. This includes deliveries of aircraft, radar systems, and transport equipment. Until now, its focus has been mostly on foreign trade. This new program expands its role by also supporting domestic investment in the defense sector.

To qualify for the program, companies must carry out their production in the Czech Republic. For international partners, this shows that Czech defense firms are operating in a stable environment, with strong government backing and long-term ambitions.

The program is expected to launch within weeks and could help Czech companies play a larger role in global supply chains at a time when demand for reliable and secure defense production is growing.

Prepared by the team from the foreign office CzechTrade Egypt.
Sources: https://www.mfcr.cz/cs/ministerstvo/media/tiskove-zpravy/2025/stat-pomuze-ceskym-zbrojarum-egap-spusti-program-p-59220
https://ct24.ceskatelevize.cz/clanek/domaci/vlada-navysi-kapital-egap-kvuli-podpore-uveru-pro-obranny-prumysl-359192