The United Kingdom is engaged in talks over joining a proposed international defence bank being led by Canada, officials and supporters say.
Backers of the initiative argue the bank would offer governments access to lower-cost loans specifically earmarked for defence-related projects, enabling public spending on procurement, infrastructure and industrial capacity without the higher interest rates associated with commercial borrowing.
Supporters say the facility could help allied states modernise armed forces and shore up defence supply chains at a lower fiscal cost, potentially speeding up investment in equipment and shared capabilities. They contend that pooled financing could also provide an alternative to national budgets for large, long-term programmes.
Details of the discussions, including any timetable, membership criteria and the scale of financing, have not been disclosed publicly. Proponents and government representatives have framed the talks as part of broader efforts to enhance defence cooperation and financing options among partner countries.