Home / MEDIA ABOUT IDIS / Economy / Expert of IDIS Â«ViitorulÂ» recommends establishing land exchange for monitoring transactions in this field and increasing opportunities for investments.
21.07.2009 Informarket 501
Such recommendations were given by Viorel Chivriga during presentation of the research: - Evolution of agricultural land market of Moldova" within the public debates on Tuesday. Agricultural land still remains fragmented and disintegrated, Viorel Chivriga argues: "Land consolidation is only apparent, because over half of all agricultural land is rented out for less than three years, which discourages investments in agriculture, does not ensure soil protection, and thus cannot be considered a plausible method of optimizing agricultural activity". Also, legislation regarding land relations is contradictory and imperfect: "There is a whole bunch of regulatory acts governing land relations and sometimes their incoherence is just striking. For example, there are land owners who still do not know where their land plots are. Also, there are plots that have an unclear legal status, such as those that are not included in the Land Cadastre. The most dangerous thing though is that regulatory gaps can be manipulated in order to serve narrow group interests", IDIS expert says. Chivriga recommends establishment of a Land Exchange that would monitor land transactions and could serve for compiling investment opportunities. The author of the research also refers to the future development of the land market, pointing out that there are clear premises for an increase of the number of transactions: "The land market will grow fast because of high interest of investors towards the land that soon could be incorporated in the extending localities, as well as towards consolidated plots of agricultural land". Viorel Chivriga forecasts a steeper rise in prices for agricultural plots adjacent to most economically developed localities, such as Bălţi, Orhei, Chişinău, Ungheni, Cahul, as investors envisage changing the destination of these plots from agricultural to urban. The author recommends amending existing legislation in order to allow foreign investors to buy agricultural land, but strictly in economically weak regions, determined by the Government, as well as the land that requires recovery and development through special protection, amelioration and sustainable soil exploitation programs. In the same time, land transaction procedures have to be simplified and their costs -“ reduced.