April 25 2002, 13:05 UNIAN

Floating mortgage price backed up by the government

UNIAN reported that as of Apr 24, 2002 Ukrainian Cabinet established "floating" price rather than a fixed one. The government believes that floating price shall depend on the price situation where mortgage price for grain should be 50% worth of the offered price.

Ukrainian Vice-Premier Kozachenko believes that "the procedure for grain mortgage price establishing shall follow the rule where 50% of the grain value offered at cash market or exchange market should be used during formulation of such price."

According to him, 100% of loans allocated for mortgage purchases will be subsidized through the state budget.

This year's share in the budget targeted for farmer's support is worth US $28mn of which US $5.6mn have been allocated so far.

Moreover, the Cabinet authorized the AIC Ministry to develop within two weeks the procedure for determining those businesses, which will have a right to operate on the grain mortgage market.