The Expert Told About the Algorithm for Calculating the Cost of Land and Obtaining Loans

This summer, a land market will officially open in Ukraine.  In this regard, a press conference was held by a member of the Verkhovna Rada Committee on Agrarian Policy Alexei Mushak.  At the press conference, the expert spoke about the mechanisms for calculating the cost of a land plot and the peculiarities of obtaining a loan for the purchase of land.

 Alexey Mushak noted that if the land leaseholder is a small agricultural company, the cost of the plot will be relatively small.  If the leaseholder is a large agricultural holding, which has clear obligations, the price of the same plot will be much higher.

 In addition, Mushak said that in the first two years, there will be no lending for the purchase of land plots for agricultural activities.  The expert noted that this requires the emergence of a sufficient number of legal entities in the agricultural sector.  Individuals will not be able to get loans because they do not have sufficient credit history.  Also, according to the expert, the land cannot be used as collateral, since it will not be enough to receive a large loan.

 According to Mushak, there are three ways to organize loans for the purchase of land.  The first way is the preparation of a targeted land emission by the National Bank, which will be directed directly to the acquisition of agricultural land.  The expert noted that such a decision can only be made by the Cabinet of Ministers.  The second option is to create a state body that will deal with the leasing of state land through electronic auctions.  The money received from such a lease will be transferred to banks to open land mortgages.  And the third option is the organization of a state land bank with the involvement of financially powerful institutions.