New Zealand has rejected a proposal to join the Bank for Defense, Security and Resilience, an initiative established under Canadian leadership to finance the militarization of NATO member states.

Operativ Media reports, citing RNZ radio.

"The defense industry would benefit more from measures that improve market opportunities than from the creation of a dedicated defense financing mechanism," the country's Ministry of Foreign Affairs said in a statement.

The ministry estimates that New Zealand's initial contribution to the bank would have been approximately $56 million, with subsequent costs potentially being much higher.

Albania, Belgium, Greece, Canada, Latvia, Luxembourg, Romania, Turkey, and Ukraine have announced their readiness to participate in establishing the bank. The financial consortium will be headquartered in Montreal and aims to raise up to $134 billion to finance military projects.