28 July 2010
Ukrainian Prime Minister Mykola Azarov said yesterday at a press conference in Kyiv that the government is planning to issue special UAH sovereign bonds to cover VAT arrears to corporate exporters on August 1. Deputy Prime Minister Sergiy Tigipko said last week the volume of the bond issue would be UAH 16.4 bln (USD 2.1 bln), down from an earlier estimate of UAH 17.7 bln. Azarov said the government plans to repay its VAT arrears in full within 2-3 months. For more details on the VAT bond issue, see our flash note of July 7.