Canada Seeks NATO Support For Global Defence Bank Proposal

By Staff, Agencies

Canada is working to secure backing from about 10 founding countries for a proposed global defence bank, with an announcement expected at next week’s NATO summit in Ankara if negotiations are completed.

The initiative, championed by Canadian Prime Minister Mark Carney, aims to establish the Defense, Security and Resilience Bank [DSRB] to help allied countries finance defense projects through low-cost lending amid rising military spending across NATO.

Isabelle Hudon, Canada's lead negotiator for the initiative, told Reuters that Ottawa hopes to reveal the first group of participating countries during the summit, although discussions over financial commitments are still underway.

According to Hudon, the initial membership is expected to consist primarily of European countries alongside Canada, while additional members could join later.

"We are aiming to announce the list of founding members," she told Reuters, adding that membership would remain open after the bank's launch.

The proposed institution seeks to raise up to £100 billion [around $133 billion] to support defense and security investments among participating nations.

The proposal came as NATO members continue expanding defense spending following the alliance's pledge to increase security-related investment over the coming decade.

Carney has presented the project as part of a broader effort to strengthen cooperation among what he has described as "middle powers" amid growing uncertainty surrounding the traditional US-led international order.

The bank is intended to complement national defense spending by providing affordable financing for military and resilience projects.

While Luxembourg has publicly committed to hosting the bank's European headquarters, negotiations with other potential members remain ongoing.

South Korea has held discussions with Canadian officials, while Germany is participating in talks as an observer, according to officials cited by Reuters.

Several other countries, including Italy, Spain, Turkey, Belgium, and Ukraine, have reportedly reviewed the proposal, although none have formally committed.

Meanwhile, the United Kingdom has continued pursuing a separate defense financing initiative with the Netherlands and Finland, though discussions over possible cooperation with Canada's proposal are ongoing.

Analysts note that the success of the project may ultimately depend on attracting enough major economies to secure a top-tier credit rating capable of supporting large-scale lending.