IMPROVING THE INSTITUTION OF PLEDGE OF AGRICULTURAL LAND

DOI 10.32651/2410-33

Issue № 10, 2024, article № 5, pages 33-39

Section: Problems of efficient management

Language: Russian

Original language title: СОВЕРШЕНСТВОВАНИЕ ИНСТИТУТА ЗАЛОГА ЗЕМЕЛЬ СЕЛЬСКОХОЗЯЙСТВЕННОГО НАЗНАЧЕНИЯ

Keywords: AGRICULTURAL LAND, PLEDGE, CREDIT, BORROWER, BANK, IMPROVEMENT OF ASSESSMENT PROCEDURES, REDUCTION OF ADMINISTRATIVE BARRIERS, RISK REDUCTION

Abstract: The problems of pledging agricultural land are identified based on the results of a content analysis of reviews of potential borrowers of the joint stock company Russian Agricultural Bank. During a scientific meeting with specialists from the Saratov regional branch of Russian Agricultural Bank, the experience of issuing loans secured by agricultural land was studied in detail. The main factors hindering the work with land assets of pledgors and pledgees have been identified, including the long processing time for a loan application, imposed paid services for a loan, a reduction in the credit limit, the possibility of increasing the interest rate, the reluctance of banks to accept agricultural land for as pledge, explained by its low liquidity, biased value, additional risks associated with challenging the borrower’s property rights (in cases of pledge of land shares), with the likelihood of forced seizure of the pledged land plot (for example, in case of violation of the intended purpose, using methods leading to degradation and destruction of the fertile soil layer). To improve the institution of pledge for agricultural land, management decisions were formulated and justified to improve valuation procedures – to unify of relevant federal standards, introducing institutional changes through the Committee of the Association of Russian Banks on collateral and valuation; to reduce administrative barriers – in particular, updating databases on agricultural land, creating a unified digital register of documents on property rights, extending measures of state support for pledgors and pledgees; to minimize legal and financial risks.

Authors: Glukhov Sergei Germanovich, Evsiukova Liudmila IUrevna