Land market benefits Ukraine's banking system — opinion

Dmytro Solohub, Deputy Chairman of the National Bank of Ukraine (NBU)

The opening of the land market will be a positive factor for the banking system, as demand for credit resources will grow. This was stated by Dmytro Solohub, Deputy Chairman of the National Bank of Ukraine (NBU), Tyzhden.ua writes.

"Land is an interesting asset for banks, but not as collateral and held on the balance sheet. A commercial bank is not a land one. That is, it takes deposits and issues loans. If it gets a deposit, it tries to sell it. In addition, as I understand it, there will be legal restrictions on the period during which it can keep this pledge on the balance sheet. Therefore, we assess qualitatively that the opening of the land market is a positive factor for the banking system because the demand for credit resources will grow," said Dmytro Solohub.

According to him, given the high potential of agriculture in Ukraine, the opening of the land market will facilitate its implementation.

He believes that land reform must be carried out in Ukraine, but it is important to do it properly to protect the rights of people who own land and to prevent negative events.

Earlier it was reported that the national currency would appreciate substantially with farmland market liberalization expected in autumn 2020.