3 Aug 2022 16:35

NBU Council approves govt's recommendations on bonds policy's impact on Ukraine's monetary sector

MOSCOW. Aug 3 (Interfax) - The Council of the National Bank of Ukraine (NBU) on August 2 approved the government's recommendations regarding the impact of government bonds policy and tax policy on Ukraine's monetary sector, Ukrainian media outlets quoted NBU Council Chairman Bohdan Danylyshyn as saying on social media on Wednesday.

The council recommended prioritizing state budget expenditure, mobilizing state budget revenue, and reinstating taxes on imports, Danylyshyn said.

The recommended measures include an evacuation in order to optimize the quantity and volume of tax and customs benefits, increasing control over transfer pricing, including by implementing recommendations of the Organization for Economic Cooperation and Development to counter the erosion of the tax base and the relocation of incomes abroad, as well as to introduce the international automatic exchange of information in tax matters under the single standard (CRS MCAA).

The council also recommended enhancing coordination of measures to prevent the further outflow of foreign exchange from the real sector of the economy and to intensify borrowing on the domestic market, including by raising the rates on hryvnia-denominated government bonds.

The other steps recommended by the NBU included introducing index-linked bonds, which will be bought and redeemed for hryvni, as well as extending the period of voluntary declaration during purchases of military bonds, Danylyshyn said.