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Parliamentary committee opposes to bill about state hypothecary bank
The Committee of Verkhovna Rada (parliament of Ukraine) for the Issues of European Integration has recommended parliament to recommit the draft law about the state land (hypothecary) bank.
According to members of the committee, the submitted bill is in disaccord with some acts of current legislation. For instance, this concerns the provision that the size of the statutory fund is determined by the founders and cannot be less than the size, established by the National Bank. This contradicts to some articles of the law about banks and banking activities.
The deputies also marked that the bill stipulated granting the hypothecary bank the monopoly right for transactions with land plots, destined for agricultural uses, without relevant limitations and the mechanisms of prevention the possible abuses, arising from such kind of monopoly state.
Besides, the committee members stressed, the World Bank experts did not recommend creating a state land bank, as the world experience proved that specialised banks did not usually have competitive potential, nor rational one.