Ukrainian Lawmakers Back Bill to Repay VAT With Promissory Notes
Ukraine’s parliament adopted a bill
allowing the government to repay value-added tax to exporters by
issuing promissory notes.
The law was backed by 246 lawmakers in the 450-seat
legislature today in the capital, Kyiv. The five-year notes,
which will yield 5 percent, can also be used to repay budget
debt through January, Valeriy Omelchenko, a lawmaker from
President Viktor Yanukovych’s party, told parliament.
Ukraine, which exited a six-month recession in the first
quarter, remains in talks with the International Monetary Fund
over a third bailout in four years. Its budget deficit jumped to
18.5 billion hryvnia ($2.3 billion) in the first five months
from 3.7 billion hryvnia in the year-earlier period.
The government owes exporters 5 billion hryvnia in VAT
reimbursements, while another 10 billion hryvnia is being
disputed in court, Revenue and Fees Minister Oleksandr Klymenko
said June 7. Budget debt was 4.35 billion hryvnia as of Jan. 1,
according to a document presented by Omelchenko.
To contact the reporter on this story:
Daryna Krasnolutska in Kyiv at
dkrasnolutsk@bloomberg.net
To contact the editor responsible for this story:
Balazs Penz at
bpenz@bloomberg.net.