The earth is not a collateral object

Chairman of the Parliamentary Committee for Economic Policy, Budget and Finance Alexander Korshunov took part in the meeting of the Council for the Development of Small and Medium-Sized Enterprises under the Government. One of the issues discussed in his speech was: the legality of the requirement for obligatory approval by the heads of state administrations of cities and districts of the pledging of land plots on which the property of owners is located. His position on it was expressed by the people's Deputy.

"We simulate the situation: the economic agent applies to the bank for a loan. The bank assesses its condition, risks associated with lending. But the borrower is still required to agree with the head of the state administration in respect of the land plot located under the facility. There are precedents when the heads of state administrations do not agree on pledge obligations.

The dispute in the course of the meeting came about whether to issue this agreement or not, since this document does not appear in the list of licensing documents for the issue of loans. When discussing this issue, I expressed the opinion that the land in Pridnestrovie, in accordance with the Constitution, is state, in contrast to the legislation of other countries. Accordingly, it is impossible to pledge property that you do not own. In accordance with this, it is inadmissible to transfer the right of lease to a land plot or the land plot itself as a pledge. Thus, land plots can not be pledged. Therefore, the procedure for reconciling with the heads of state administrations can not exist a priori. Only the state has the right to transfer land for use, but not in ownership.

This issue should be discussed again in the government, then, I am sure, a number of legislative initiatives will be prepared for consideration by the deputies of the Supreme Council in order to simplify the receipt of credit resources by business entities".