OREANDA-NEWS. July 19, 2010. The Government is to launch floating of government domestic loan bonds as of August 1 to reimburse VAT refund. The Prime Minister of Ukraine Mykola Azarov said this during a meeting with representatives of business circles and heads of diplomatic missions in Ukraine.

" I think that as of August 1 we will release public obligations to reimburse our debt and float our bonds, make absolute monetization and converting of them. I think we will resolve this problem", said Mykola Azarov.

The Head of the Government stressed that the value of bonds to be issued is about 17.6 billion UAH. According to him, it is this amount that corresponds to the real value of VAT debts. Mykola Azarov noted that in general it was declared that VAT debts made up 34 billion UAH: "From nothing we have 34 billion UAH of VAT arrears. Approximately 17,6 billion UAH is a realistic sum, the remaining amount has been generated by 'compensators' and 'minimizers' who have set up their business on VAT".

According to him, the Cabinet of Ministers since January 1, 2011 is to go to the automatic return of the tax. The Government should work out a mechanism by this time: "You must create a reliable mechanism how to estimate the amount of real VAT reimbursement", emphasized Mykola Azarov.

The Prime Minister is confident that by the end of 2010, the Government will fully solve the problem of VAT refund.