Ukraine should create conditions for farmers to have an opportunity to buy land when the market opens. The Prime Minister of Ukraine Oleksiy Honcharuk said on the air of the Freedom of Speech program on ICTV channel.
“Large holdings now have a cheaper resource. Small companies have much more expensive, they do not have the resources to buy this land. We should provide the opportunity for a small farmer to buy land at a much lower interest rate to put them (farmers) on par with foreign entities or to make them outstrip. We plan to create a tool that would offset this interest rate”, said Oleksiy Honcharuk.
He added that the start of a land reform is planned to take place around the summer of next year. By this time the Government together with the National Bank should make lending in UAH much cheaper than it is now - it will be available to take a loan at 14-15% in UAH.
"That is, we will reduce the interest rates on loans as a whole and make them even cheaper specifically for the purchase of land so that the Ukrainian citizen finds himself in better conditions than his foreign competitor", the Prime Minister explained.
Apart from that, Oleksiy Honcharuk stated that the Ukrainian natural person and the Ukrainian legal entity would have access to the purchase of the land: “We must allow land transactions for everyone who have the opportunity to cultivate it, including for foreign citizens, but provided they register a legal entity in Ukraine and pay taxes here.”
According to the Prime Minister, his team, along with experts from the World Bank, have calculated 25 scenarios following which the land market can open up. "We analyzed at what combinations the effect of opening the earth would be at the maximum. With what model of reform we, as Ukrainians, will be able to get maximum economic growth, while 1% of GDP growth is about UAH 15 billion extra revenues of the budget. This means that we will have additional money to build schools, roads, infrastructure, invest in education and so on”, said Oleksiy Honcharuk.