Ukrainian President Viktor Yanukovych signed into law on Tuesday the bill amending the Law of Ukraine on Banks and Banking concerning the state land bank, the press service of the head of state reported.

“This document sets out the procedure of functioning in Ukraine of a state land bank to be established in accordance with the requirements of the Land Code of Ukraine with the main objective of providing agricultural producers and farmers with loans at low rates (maximum 5%) pegged to the rate of the National Bank of Ukraine,” the report reads.

The law provides that the Cabinet of Ministers of Ukraine shall transfer state-owned agricultural land to the authorized capital of the land bank, which is also owned by the state and shall not be privatized.

The law comes into force on the day following the day of its publication.

UKRINFORM