KYIV. Jan 5 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has proposed that the parliament puts into effect the reorganization or privatization of the State Land Bank via the State Property Fund of Ukraine.
Bill No. 3733 was registered in the parliament on December 28, 2015.
According to an explanatory note to the document, now the State Land Bank is being liquidated, but the alternative to this is its reorganization of privatization to sell the state-owned shares to potential investors. This would allow returning funds to the national budget that were used to form the bank’s charter capital and attracting additional investment to the Ukrainian agricultural sector.
As reported, the parliament on June 17, 2014 permitted to liquidate the State Land Bank.
The State Land Bank was created to realize new mechanisms of agricultural crediting and provide farmers with affordable funds. The previous Cabinet of Ministers of Ukraine sent UAH 120 million in the charter capital of the bank, and amendments to the Land Code are to be adopted to put land plots in the bank’s charter capital.
It was planned that the bank will manage farmland in state ownership and will fulfill functions on the realization of state credit programs, first of all, for small and medium-sized business in rural areas.
