Ukraine Land Bank Will Enable to Carry Out Land Consolidation
OREANDA-NEWS. June 22, 2012. The State Land Bank has to become a universal financial institution that will actively cooperate with Ukraine's commercial banks regarding refinancing, granting and receiving of guarantees, as well as to take upon oneself of some risks associated with lending to farmers.
This was stressed by Sergiy Tymchenko, Chairman of the State Agency of Land Resources during a press conference in the Cabinet of Ministers of Ukraine.
It is assumed that State Land Bank in Ukraine will be working with all forms of agro enterprises, using different types of collateral for loans and to ensure reduction in price cost of credit resources for farmers.
According to Sergiy Tymchenko, without land bank and its financial resources it is impossible to conduct land consolidation as well as to fulfill many other public duties, such as solving problems with land when construction of national importance facilities (roads, pipelines, power supply, etc.).
Providing domestic food security by maintaining large land massifs in state ownership will be one more important task of the Bank.
Given a role of the State Land Bank in implementation of land reform in Ukraine, especially its future functioning, the Cabinet of Ministers of Ukraine and National Bank of Ukraine, and NAS Ukraine have concluded that such bank should be established separately and not on the basis of another bank.
The funds allocated by the state had fully been foreseen in the budget of Ukraine for reforms implementation in agricultural sector, therefore means for the bank establishing - no other than a redistribution of budget resources in terms of optimizing the costs for carrying out reforms in agriculture by the state.
One of main objectives of the State Land Bank is preferential crediting of agricultural producers under land pledge.
It's expected that the State Land Bank will provide soft loans under 8 - 9 percent per annum under land pledge for the owners or under secured by lease rights if the land in lease.
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