Farmers waiting for Land Bank opening, - Agricultural Policy Ministry of Ukraine

This year, the State Land Bank will provide farmers with loans at interest rates two times lower than the current rates of commercial banks. And cooperation of the Land Bank with the European Bank for Reconstruction and Development will help attract additional loans for farmers and improve regulation in the turnover of agricultural land, - the press service of the Agricultural Policy Ministry informs.

"Our goal is to get a financial institution that would be involved in mortgage lending and provide to farmers funds at reasonable interest rates. According to our calculations, the interest rate of the Land Bank will fluctuate at 10% per annum, that is two times less than the current rates of commercial banks," Bagrat Akhijanov, director of the financial and credit policies department at the ministry of agrarian policy and food of Ukraine, said.

This year, the Land Bank must already begin its work. However, to fulfill its mission as a specialized agency for mortgage crediting, it is necessary to implement another position - to transfer to the bank the agricultural land that would become the capital to provide cheap loans to farmers. Therefore, on January 1, 2013 an inventory of public lands for agricultural purposes began in order to include them into the authorized capital of the State Land Bank, the statement says.

Moreover, the Land Bank must ensure the implementation of an effective mechanism of state market regulation in the turnover of agricultural land.

"This is not just a commercial bank. It will serve two purposes: commercial - to give farmers loans at 6-8% per annum on the security of land, and economic - to dispose of state land. Therefore, a land bank will be an additional signal to investors about the security of the Ukrainian agricultural sector," Minister of Agrarian Policy and Food Mykola Prysiazhniuk said.

September 6, 2012 the Verkhovna Rada adopted the decision to establish the Land Bank in Ukraine. In October 2012, President Viktor Yanukovych of Ukraine signed Law 5248-VI on amendments to the law of Ukraine on banks and banking concerning the State Land Bank, which defines the mechanism of forming a share capital of the Land Bank. Based on this law, the government has taken appropriate decisions on establishment of the State Land Bank and on approving the State Land Bank statute.



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