The Ukrainian government has set the limit volume for the issue of government domestic loan bonds for VAT refunds at Hr 7 billion.
The cabinet adopted corresponding decree No. 187 on June 18 on the
basis of information from the Income and Tax Ministry on the results of
ab inventory of VAT declared for refunds as of Jan. 1, 2014 and
posted on its Web site.
According to the program of cooperation with the IMF, debts on VAT
refunds as of Jan. 1, 2014 can be formalized with VAT bonds. The
total volume of their issue will not exceed Hr 16.7 billion. The
amortizable bonds are issued for five years at the discount rate of the
National Bank of Ukraine [from April 15 – 9.5 percent]. A coupon is paid
semi-annually together with the amortization of 10 percent of the principal
amount. The nominal value of book-entry bonds is Hr 1,000.
The amount of the issue of VAT bonds is determined by the Finance
Ministry in the limit set by the Cabinet of Ministers according to
registers of inventory of VAT payers. Each issue will be formalized with
a global certificate.
