New Zealand declines multi-billion dollar Defence Bank membership
New Zealand has declined an invitation to join the Defence, Security and Resilience Bank (DSRB), a multilateral financial institution aimed at financing defence industries in member states like Ukraine and Turkey. The initial contribution for New Zealand would have been NZ$100 million, with additional costs expected over time. According to advice from the Ministry of Foreign Affairs and Trade (MFAT), the government decided the country's defence capacity would benefit more from improving market opportunities rather than participating in the DSRB.
The DSRB, led by Canada, is set to have a capitalisation goal of approximately €100 billion (NZ$201 billion) by the end of the year and aims to be operational by early 2027. Member states include Ukraine, Turkey, and several European countries, with plans to expand to Australia, Japan, and South Korea. New Zealand was invited to join negotiations over the bank's charter in late April but declined the offer in late August.
The decision comes as New Zealand plans to increase its defence spending to 2 percent of GDP ($12 billion) over eight years, under a 2025 Defence Capability Plan (DCP). Budget 2026 allocated $3.5 billion for the current fiscal year. While New Zealand has turned down the offer "at this time," MFAT indicated that the government will continue to monitor developments.