According to Reuters on July 2, Canada aims to announce a list of about 10 countries that will join the founding of the Defense, Security, and Resilience Bank (DSRB) at the NATO summit in Turkey next week.
The DSRB is envisioned as a multilateral financial institution that will provide low-interest funding to enhance the defense industry and security capabilities of allied nations, with a funding target of up to £100 billion (approximately 204 trillion won).
Isabelle Widgery, CEO of the Canada Business Development Bank (BDC), stated, "We are looking to the NATO summit as the time to announce the founding countries." It is expected that most of the initial participating countries will be European, excluding Canada.
There remains a possibility for South Korea's participation. Widgery noted, "We have had productive discussions with South Korea," but added that the likelihood of South Korea joining is about 50%. The South Korean Ministry of Economy and Finance is reportedly reviewing Canada's proposal.
However, there are variables that could affect the realization of this plan. To secure low-interest funding, the DSRB needs to achieve a high credit rating, and it is currently unclear if other major G7 countries will join soon.
Canada intends to launch the DSRB with countries that express interest initially, while keeping the door open for additional members. However, if support from major economies is lacking, it may take time for the DSRB to establish itself as a significant defense financing institution.
* This article has been translated by AI.
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