VAT bonds worth UAH 20 b to be issued for five years at 5.5% per annum, Azarov says

The state will issue VAT bonds worth UAH 20 billion for five years at a rate of 5.5% per annum, Ukraine Premier Minister Mykola Azarov has said.

"We will consolidate the state's obligations on VAT soon. The treasury will get a general credit guarantee. These will be securities in an electronic form which will confirm the state's obligation to reimburse VAT," Azarov said.

The premier said that the bonds would be placed by Oschadbank and Ukreximbank. The discount on the bonds is to be 10% per annum.

As reported, the law on the national budget for 2010 approved and signed by the Ukrainian president foresees a reimbursement for VAT to tax payers who declared the sum of tax to be reimbursed by May 1, 2010 using domestic government loan bonds. The issue procedure and more detailed terms of the bond issue will be determined by the government. Earlier the government said that the bond issue could be worth about UAH 20 billion.