State Land Bank of Ukraine will start operations in 2013
MyLand - 08/02/2013:
Ministry of Agrarian Policy and Food of Ukraine reports today, on February 8, 2013, that State Land Bank in Ukraine will start operations in 2013.
It is expected that the Bank will provide farmers with affordable loans, i.e. interest rate to be charged will make up 50% of that of commercial banks or about 10% a year. In order to enable tha Bank to do so, the Governments seeks to transfer state-owned agricultural land under the bank control. Thus the Bank will unite financial services with administrative competence in the field of public land administration which is currently assigned by the Constitution of Ukraine to the local authorities and executive bodies.
The Bank is also expected to act as a regulatory tool for market circulation of farmland in Ukraine. So far moratorium on alienation of farmland is effective till January 1, 2016, thereupon, if nothing chages, State Land Bank will become a land market player with almost no restrictions applicable to its operations. Draft laws on landmarket in Ukraine provide for numerous such restrictions, like a ban on corporate farmland ownership, foreign farmland ownership and establishment of upper ceiling of a single-hand farmland ownership (100 ha). There is also a limit on area of farmland in leasehold, although so far it is not clear to what extent leasehold is going to be limited. Currently no such restriction seems to be applicable to the Bank.
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