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We need to give farmers opportunity to buy land, - Ukraine's PM on land market

The government plans to do so by reducing credit rates
12:42, 3 September 2019

Ukraine's PM Oleksiy Honcharuk
pravda.com.ua

Ukrainian government is currently working on an instrument that would enable farmers to buy land in the frameworks of opening a new land market. Prime Minister of Ukraine Oleksiy Honcharuk said this on air of Freedom of Speech TV program.

“Large holdings’ resource is cheaper now. Smaller holdings have а more expensive resource; they cannot buy this land. We need to give a small farmer the opportunity to get a loan at a much lower credit rate so that he is on par with foreign entities or would even be in better conditions. We plan to create an instrument that would compensate this interest rate,” Honcharuk explained.

He also added that before starting the land reform in summer 2020, the government together with the National Bank would make lending in Ukrainian currency cheaper, and the loan could be taken at 14-15%. Credit conditions for land purchase will be more favorable for the Ukrainian compared to the foreigner.

"Access to the purchase of land should be given to all those who can cultivate it: Ukrainian natural persons, legal entities and foreigners, but only if the legal entity is registered in Ukraine and pays taxes," he noted.

Honcharuk stressed that his team had already developed 25 scenarios for opening the land market and calculated the conditions under which GDP would grow to maximum. If it is 1%, Ukraine will receive plus 600 million dollars in the budget.

As it was reported earlier, President of Ukraine Volodymyr Zelensky instructed the Cabinet of Ministers to draw up a bill on land market by October, and entrusted the Verkhovna Rada to adopt it and lift the moratorium on agricultural land sale by December 2019. In particular, the government has to develop and submit to the parliament a bill on the agricultural land market and lifting of the moratorium on land sales by October 1, 2019.  

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