Photo from UNIAN
The issue of financing can be partially solved by creating a mortgage bank with a state-owned controlling stake.
Ukrainian Member of Parliament and Chairman of the parliament's subcommittee for economic and financial policy in the agro-industrial complex Leonid Kozachenko says Ukrainian agri-businesses will need US$6 billion to purchase land at the initial stage in the event of lifting the moratorium on the sale of agricultural land.
Read alsoECHR rules to lift farmland sale moratorium in Ukraine
"According to studies, almost 10% of the land will be immediately sold. This requires about $6 billion. Where can farmers get such funds to buy land? We need long-term resources. However, no international financial organization can provide them now," Kozachenko said on October 9.
According to the official, the issue of financing can be partially solved by creating a mortgage bank whose controlling stake will belong to the state.
"Some 4 million hectares of agricultural land, being in state ownership now, can be used as collateral for borrowings from international organizations. Other state assets can also be used as collateral," Kozachenko added.
Moreover, he stressed he supports a ban on the concentration of land plots with one owner, as well as that on foreign access to the Ukrainian land market.
As UNIAN reported earlier, the moratorium on the purchase and sale of agricultural land in Ukraine had been in effect since 2001. The Verkhovna Rada, Ukraine's parliament, extended it until 2019.