UK will not join Canadian-led defense bank, but promises cooperation – National

The British government has rejected Ottawa’s efforts to join the international Defense, Security and Resilience Bank, although London has said it will work with Canada to meet NATO spending targets.

The DSRB was intended to reduce borrowing costs for military spending by pooling credit strength among allied nations.

Canada has been trying for months to convince Britain to join the project, but London has instead pursued its own program called the Multilateral Defense Mechanism.

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Canadian government ‘encouraged’ when 8 countries commit to global defense bank

The two countries on Sunday agreed to establish a framework for cooperation between the two banks, “after jointly concluding that it is best to develop two different but complementary institutions.”

The two will “work in close partnership” on investment opportunities and challenges, according to a joint media statement.

The DSRB will be based in Canada and have support from countries such as Belgium, Türkiye and Ukraine.