Last week he paid a visit to the Kherson region. And results of the trip said that should intensify land reform: "It is necessary that the land has been an effective owner, were the rules of land use, and owners to comply with them."
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More details about the initiative to establish a land bank said Nikolai Kalyuzhny, deputy head of the State Agency of Land Resources.
According to him, it comes to creating mortgage agricultural bank that would issue loans secured by land: "The bank will open this year, but the work will proceed as follows. The estimated rate for such loans at 10% per annum."
According to the experts and participants of the agrarian market, creation of land bank does not guarantee the market launch of agricultural land. Do not forget that until 2012, Ukraine has a moratorium on the sale of land of this kind, and it is possible that it will be extended.
According to Vladimir Zhmutskogo, a leading expert of the Center im.A.Razumkova (Kiev, since 1994; 35 people.) Lifting of the moratorium is only possible if the Verkhovna Rada adopted a law on the land and the Land Registry.
The first of these will set the rules of land sales, the second will create an inventory of agricultural lands. Both laws are necessary for normal functioning of the market.
However, given the speed with which Parliament recently considering a bill can be no doubt that if the deputies receive the appropriate instructions from the Presidential Administration, the necessary laws will be passed as soon as possible.
Much more significant problem appears then that to create a land bank will need a lot of money. To begin with Government will have to find, at least 75 million USD. for the formation of the charter of the bank. But this is peanuts compared to the amount that really need to get the financial institution.
According to Vladimir Feet, the head of the expert group of the association "Ukrainian club of agrarian business" (Kiev, a public association in the agribusiness sector, since 2007, 10 people). If the agency will issue loans announced by 10%, then it normal operation will need at least 20 billion USD.
"Given the problems with the filling of state budget allocation of these funds this year looks unreal," - said Mr. Lapa BUSINESS.
In turn, Mr. Zhmutsky draws attention to the fact that the state will have to create a network of bank branches, for it takes time: "I believe that for a start would be to test the effectiveness of the bank by the example of non-agricultural lands that are now quietly being sold" .
News from the Field
In turn, the landowners argue that to support farmers and land owners to create a land bank is not required.
"Complexities in the establishment of a bank there. The question in the other. On what conditions the bank will provide loans. If his condition will not differ from the conditions under which provide loans to commercial banks, the point in creating it I do not see" - said Arkady BUSINESS Kornatsky, predsedatelsoveta Directors of "Agro Kornatsky" (since 1999, more than 30 thousand hectares of arable land in the Mykolaiv region)..
According to him, if the government really wants to lend to farmers, it can do so through a network of state-owned commercial banks, for example Oschadbanka and Ukreximbank.
Agrees with him and Yaroslav Kardash, first vice-president of the Association of Farmers and Private Landowners (Kiev, since 1996, represents the interests of 43 thousand farmers and 4 million individual farms). According to him, primarily the state should check the terms on which loans will be provided.
"Given the current situation of farmers and peasants, it is necessary to loans granted for long terms - up to 20 years" - said Mr. Kardash BUSINESS.
In turn, Vitaly Vavrischuk, an analyst with BG Capital (Kiev, from 2000 until September 2008 Galt & Taggart Securities), notes that there is no guarantee that the cash infusion to the state only specialized financial institution will be more effective than compensation for other lending rates of commercial banks: "It is possible that efficacy will be similar to most government support programs, when the preferences and access to resources get some close to the authorities of the enterprise."
According to senior analyst with the International Centre for Policy Studies (Kiev, since 1994, and 25 people.) Alexander Acorn, the effectiveness of the new bank will depend on the rules of the game, which initially will be registered in the land market, and how they will be respected, because of any government is always a temptation to inappropriately use the state-owned banks.
It is worth noting that in 2005 the authorities have tried to create a land bank. Then the Parliament even considered the bill, but prior to its adoption is not reached. At the same time, the experience of countries in Eastern Europe demonstrates that a single land bank leads to problems in integrating into the EU. Indicative in this respect is Latvia.
In 1990 the country was created by the land bank, but during the negotiations for accession to the EU one of the conditions was the liquidation of financial institutions and the right to lend to farmers all banks.
If farmers create a land bank is not a prerequisite of normal functioning land market, then for the authorities is a great opportunity to control a new market.
If the land bank to acquire an exclusive right to lend to small landowners, then under his control in the near future will be significant land resources.
In addition, the bank will report to the National Bank, whose leaders close to President Viktor Yanukovych. Thus, the monopoly of the land bank can be used to manipulate the land market.