The Government proposes to refuse from issuing treasury bills and start issuing sovereign bonds

The Cabinet of Ministers proposes to refuse from issuing of treasury bills and to start issuing of guaranteed by the state sovereign bonds to companies with not returned VAT.

This was started by Prime Minister Arsenii Yatseniuk representing in the Parliament a draft laws on the prevention of financial disaster, and creating conditions for economic growth in Ukraine (№ 4576) and on the amendments to the State Budget-2014 (№ 4575) Thursday, 27 March.

Arsenii Yatseniuk said that the total amount of the dept on the value added tax, according to the Government, is UAH 21.7 billion. "Negotiations with our lenders are very difficult, but we are fighting for each figure, as due to the state in which Ukraine is, nobody wants to lend money. But we've found approaches and beliefs, how to explain that it should be done, because we are dedicated to real reforms."

The Prime Minister said that the Cabinet eliminates treasury bills.

As noted A. Yatseniuk, the Treasury has no money for the VAT refund; he added that in February, the Ministry of Income and Fees of the former government wrote off UAH 5 billion to refund the value added tax to firms that have any relation to VAT refunds.

Instead, the Government proposes to use a tool that was used in Ukraine in 2004 - "publicly, transparently, to every company that has a non-refundable VAT to give not bills, but sovereign bonds."

Arsenii Yatseniuk stressed that these sovereign bonds the subjects of entrepreneurial activity can get cheap and long loans.

"So we will return to the economy around UAH 20 billion," the Prime Minister said.