Problems of Municipal Management of Mortgage Operations with Agricultural Land

Abstract

The article analyzes the current state of domestic municipal management of mortgage operations involving agricultural land, which possesses significant advantages. These advantages include the following characteristics: agricultural land mortgage loans contribute to resource savings and facilitate their attraction by farmers; land mortgage loans are accessible; land resources serve as collateral for loan repayment and as a safeguard for borrower-farmers; land resources, as pledged assets, enable obtaining substantial loan amounts; land resources guarantee the targeted use of loans as defined by the credit agreement.

The most significant issues in the management of agricultural land mortgage operations include the insufficient influence of local self-government bodies on the conclusion of land mortgage agreements and the lack of municipal authority to terminate mortgage contracts in cases where mortgage loans are obtained at excessively high interest rates or when necessary. Additionally, Ukraine lacks a Land Mortgage Bank, and the infrastructure of the land mortgage market remains underdeveloped.

The key directions for improving agricultural land mortgage operations within local territorial communities should include: the re-establishment of the Land Mortgage Bank; improvement of the regulatory framework for agricultural land valuation; development and implementation of local geoportals in all territorial communities of Ukraine; budgetary incentives to expand the land mortgage market infrastructure; state support for farmers by financing part of the Land Mortgage Bank's income from the state budget during the first 5–8 years after the war; prohibition of mortgage operations involving agricultural land for foreign creditors; granting local self-government bodies the authority to terminate land mortgage agreements with creditors who issue mortgage loans at excessive interest rates, use agricultural land inefficiently, or for purposes other than those intended.