Danylo Hetmantsev, a member of the Verkhovna Rada from the Servant of the People faction, head of the parliamentary committee on finance, tax and customs policy, advocates the mandatory purchase of government domestic loan bonds by the population.
He announced this on his Telegram channel, the Ukrainian News agency reports.
"Can a similar mandatory accumulation scheme be introduced in Ukraine (exclusively for wartime and exclusively for financing the security and defense forces) is a matter of deep political, social and professional discussion. Yes, we already have a military levy (by the way, a similar military levy, a war levy, was also in Israel). However, these are various instruments for financing military efforts, in which it is mandatory to participate in the payment of taxes or the purchase of bonds. Likewise, I believe that we should switch to the side of state banks to a certain format of mandatory purchase of war bonds on the basis of individual plans to be developed by the Ministry of Finance and the NBU," the MP wrote.
At the same time, he does not consider such proposals adequate for peacetime.
"However, the war continues, and no one knows how long it will last. Regardless of the results of the election in the U.S., external support, we must increase additional internal sources of financing military efforts," Hetmantsev added.
Stimulating the demand for loan bonds lies primarily in the area of maintaining attractive rates for these instruments.
The weighted average yield of hryvnia government bonds issued in October was 15.6%.
This is ahead of forecast devaluation and inflation.
For the public, the investment attractiveness is even greater, taking into account the absence of taxation of investment income, personal income tax and military levy (unlike deposits).
"At the same time, the experience of some countries that went through major wars shows that market incentives alone may not be enough to mobilize domestic savings for the needs of the security and defense forces. In the same Israel, which we consider as a model country, which for more than 70 years has been successfully defending itself against the prevailing forces of the adversary countries, in the 1970s introduced a number of compulsory savings schemes, including a long-term compulsory defense loan," Hetmantsev stressed.
He added that additional internal sources include all possible resources, primarily those related to the de-shadowing of the economy and the fight against corruption.
As the Ukrainian News agency earlier reported, in October 2024, the Ministry of Finance raised a record amount from the issuance of government bonds – UAH 106.9 billion in equivalent: UAH 83.4 billion and USD 569 million.
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