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ACC insists on early adoption of law on govt bond issue for settlements with 'green' energy

20.10.2020 20:45 "Agro Perspectiva" (Kyiv) The American Chamber of Commerce in Ukraine (ACC) calls on the government and the parliament to expedite the adoption of bill No. 4151 on the issue of government domestic loan bonds to pay off part of the accumulated debt and ensure current payments of «green» electricity producers.

«We hope that the Ministry of Finance and Ministry of Energy will work with the parliament’s budget committee to determine the appropriate amount of the bond issue, sufficient to cover 40% of the accumulated debt and ensure 100% of current payments to renewable energy producers (RES producers) for August-December 2020,» it said on its website.

«Our members believe that the adoption of draft law No. 4151 amending the law on the state budget for 2020 aimed at supporting the production of electricity from renewable energy sources may help the fulfillment of the state’s obligations and back up the settlements with RES producers by reducing existing debt and preventing its further accumulation. Providing for the issue of the state bonds, as part of the instruments envisaged by law No. 810-IX, the draft law will allow RES producers to provide timely payments to the Ukrainian state-owned banks and international financial institutions under their loan agreements,» the report says.

«According to law No. 810-IX, which contained the main agreements of the memorandum of understanding signed on June 10, 2020, between the government, the National Energy and Utilities Regulatory Commission, and renewables associations, the decreased feed-in tariff (FIT) rates were launched on August 1, 2020, reflecting the fulfillment of the investors’ commitments,» according to the document.

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