Wellington said defence industries would benefit more from improved market access than from a dedicated financing mechanism.
New Zealand has declined to join the Defence, Security and Resilience Bank (DSRB), a proposed Canada-led lender intended to finance NATO countries’ defence needs. Local broadcaster RNZ reported the decision, citing New Zealand’s Foreign Ministry.
The ministry said defence companies would benefit more from measures improving access to markets than from a dedicated financing institution. Wellington informed Ottawa at the end of August. New Zealand’s initial contribution was estimated at about $56 million, with further costs potentially higher.
The idea for a bank serving allied countries’ shared defence needs emerged in 2024 and has gained support from 10 countries. The DSRB aims to raise around $133 billion. Under a provisional proportional model, Canada would contribute up to $1.7 billion at the first stage, while smaller countries would pay €500 million to €750 million each.