June 5 2002, 09:45 UkrInform

Hypotecary bank issue controversies

UkrInform reported that as of June 4th the Head of the State Land Resources Committee Anatoliy Danylenko declared that it is a matter of concept whether the hypotecary bank in Ukraine should be run by the state or be a private business.

First off, he believes that the bank should be extra transparent and go through a thorough auditing procedure. Moreover, this should be such an institution, which would have an image for both domestic investors and foreign investors. Presently this issue of image is a key issue for agrarian sector of Ukrainian economy and construction where large investments are being wanted.

Danylenko also believes it a mistake to influx budget funds or a WB loans into the statutory capital of such a bank. He said that no matter how much money are placed in this bank it will still not suffice to shift Ukrainian economy to a higher level. In his opinion Ukraine will profit much from securities issued by such hypotecary bank to be sold both domestically and on the foreign markets if money for sales of the latter will be channeled into implementation of targeted programs.