Page 39 - UKRRptSept20

6.1.2 ​Budget dynamics - specific issues...
President Zelenskiy has signed a law dropping Ukraine’s 20% VAT from the production of videos, films, TV programs, cartoons and commercials for export.​ Zelenskiy, who owns his own production company, predicts foreign productions will boost hotels, restaurants, transport companies and law firms. He says: “It will also have a positive effect on the popularization and improvement of Ukraine's image in the world, in particular, to improve its investment attractiveness in other sectors of the economy.”
The Rada approves state guarantees on $183mn of loans made to small and medium-sized enterprises​, according to the government. Should borrowers default, the government will be obligated to repay up to 80% of the principal on loans made to entrepreneurs by state-owned banks.
The Rada authorizes the Ministry of Finance to issue more domestic local currency bonds​ (OVDPs) for the additional capitalization of the State Mortgage Agency to expand mortgage lending, reports Liga.net.
6.1.3​ Budget dynamics - funding
Ukraine’s Finance Ministry repaid on maturity the Eurobond issued in late 2015 as a part of a sovereign debt restructuring task, ​the ministry reported on September 1. Initially, MinFin issued 1.78bn in Eurobonds maturing September 1, 2020. In September 2017, Ukraine bought back $0.42bn of these bonds, while in August 2020 it sold $0.33bn of these bonds as a part of a deal to buy back Ukraine’s GDP-linked securities. In this way, the total amount of the bonds due on September 1, 2020 was $1.69bn. In addition to the bond’s redemption, MinFin also paid $0.40bn of coupons on the bonds
39​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com