Ukraine's Cabinet of Ministers in the second quarter of 2016 will register a bill in parliament to reorganize or privatize public joint-stock company State Land Bank (Kyiv).

According to the government's top priority plan for 2016 posted on its website on May 20, the government could raise UAH 200-250 million as additional revenue of the budget after the reorganization of privatization of State Land Bank via the State Property Fund of Ukraine.

According to an explanatory note, at present State Land Bank is being liquidated. An alternative to this is its reorganization or privatization to sell the state-owned shares to potential investors. This would help to return funds that were used to create the bank's charter capital to the national budget, as well as to raise more investment to the Ukrainian agro-industrial complex.

The Verkhovna Rada permitted to liquidate State Land Bank on June 17, 2014.

The State Land Bank was created to realize new mechanisms of agricultural crediting and provide farmers with affordable funds. The previous Cabinet of Ministers of Ukraine sent UAH 120 million in the charter capital of the bank, and amendments to the Land Code are to be adopted to put land plots in the bank's charter capital.

It was planned that the bank will manage farmland in state ownership and will fulfill functions on the realization of state credit programs, first of all, for small and medium-sized business in rural areas.