Azarov says UAH 20 bln in five-year VAT bonds will be issued at 5.5% p.a.

Prime Minister Mykola Azarov said yesterday that the government plans to issue UAH 20 bln in five-year VAT bonds this year, with coupon rate of 5.5% p.a., according to Interfax. The bonds will be sinkable with 10% of principal repaid every half year. Azarov said state banks Oshchadbank and Ukreximbank would place the bonds. The 2010 state budget provides for the reimbursement of VAT debts as of May 1, 2010 via the issuance of VAT bonds.