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EBRD will disburse Ukraine advance loan to finance project of land property rights state certificates issuance
On August 21 Ukrainian party has signed the agreement letter between Ukraine and International Bank for Reconstruction and Development about disbursement to Ukraine of the $144 million advance loan for preparation of the Project "Issuance of state certificates of land property rights in rural areas and development of land-survey system in Ukraine."
The aim of the advance loan is to finance some costs, involved in preparation of the project, which is targeted to fair assignment of land plots to private persons in rural areas, establishment of their property rights by way of issuance of state certificates and restructuring of farming enterprises into more efficiently working businesses.
According to Ukraine's Deputy Prime Minister Leonid Kozachenko, the advance loan will be disbursed immediately after signing the agreement by Ukraine's Cabinet of Ministers. Concerning the date of the complete loan disbursement - it will depend on Verkhovna Rada's (the Parliament of Ukraine) ratification of credit agreement with the EBRD.
According to Kozachenko, project implementation is scheduled up to 2007. However, the main part of state certificates will be issued within the next year.
"The project envisages not issuance of land certificates alone, but also resolving a number of other important tasks. One of the most pressing of them is informational work among rural population of Ukraine to explain the people their rights concerning land ownership, to give them information concerning land leasing, purchasing, selling, inheriting, etc.," Kozachenko said. Besides, he noted, a number of issues was connected with land-survey system formation, the system of registration and control over land plots turnout, etc. "All these concerns will be approached in complex, during 5 years," he said.
According to the Head of the State Committee for Land Resources Volodymyr Kulinych, complete implementation of the state certificates issuance project and introduction of state land-survey and registration in Ukraine will help to direct into state budget a sum, equivalent to some US$938 million per year. Currently the sum of such earnings is equivalent to about US$375 million per year. Thus, taking a loan in the amount of $143 million for a 17-year term, Ukraine can increase its budget earnings by some $563 per year. Kozachenko characterised such terms of credit to be extremely beneficial for the country.
On behalf of Ukraine the agreement letter was signed by Leonid Kozachenko.
On behalf of the EBRD it had been earlier signed by EBRD Director for Ukraine and Belarus Lukas Barebones.