Ukraine's Cabinet of Ministers is to launch the placement of government domestic loan bonds as of August 1, 2010, to repay delayed value-added tax (VAT) refunds, Ukrainian Prime Minister Mykola Azarov said.
"I think that as of August 1, 2010 we’ll issue government bonds and launch the placement," he said while addressing businessmen in Kyiv on Thursday.
He said the government would issue the so-called VAT bonds to the tune of about Hr 17.6 billion. This amount of VAT reimbursement arrears has been verified by audits.
"Hr 17-18 billion (in VAT refund debts) is a realistic sum. The remaining amount has been generated by ‘compensators’ and ‘minimizers’ who have set up their business on [the basis of] VAT," he said.
