AYFB: Georgian Land Alienation without European Style Distinct regulations ,is Inadmissible

\"The Association of Young Financiers and Businessmen _ AYFB” is responding to the amendments  to the law of Georgia  on \" Privatization of Agricultural Land” and considers ,that  before its enforcement  , the initiators , Ministry of Finance and Ministry of Justice,  should one more time, properly analyze the risks, following these amendments and so, make decisions based on public interests.

Vice president of \"AYFB”, ShotaGulbani, has talked about amendments to the law at the news agency   \"Pirveli”  press club.

According to the amendments, foreign citizen registered in Georgia as legal entity and international financial institutes have right to  purchase the land,

Foreign citizen meeting following conditions can also purchase the land:

<!-- [if !supportLists] --> ·                     <!-- [endif] --> If agricultural land has been inherited.

<!-- [if !supportLists] --> ·                     <!-- [endif] --> If  agricultural  land is the object of his/her joint estate, gained by means of marriage  with the citizen of Georgia or membership of household with participation of one ore more citizens of Georgia.

<!-- [if !supportLists] --> ·                     <!-- [endif] --> Has permission considered by the law  on legal status of foreign citizens and stateless persons in Georgia;

As ShotaGulbani has declared during the briefing, on the recent stage ,agricultural development has other  important issues in need of quick regulations ,such as improvement of land registration, recording of agricultural lands, drafting agricultural land code, that will solve problems related to lands, instead of restrictions on land alienation.

Agricultural land code should strictly and precisely declare demands for purchasing the land by foreign citizens, based on the main interests of local residents such  land, meaning,  employ local population and produced production on this land shall be used for the interest of Georgia. It is important that legislator has to consider, that the land is essential resource  of  Nation and it is not unlimited, it needs protection  first of all trough right legal measures, as it regulated in EU countries, and unlimited alienation of lands can not be regarded  as right argument and  adequate motive for attracting  foreign investors, as it has been frequently appealed. It is also surprising , that while the country is in the process of implementation European standard in the framework of Association Agreement,   convergence with European regulations upon land has never carried out, where it is clearly defined under what circumstances can foreign citizen purchase the land in other country.  \"We are not talking of the full restriction of land alienation, of course, but, there are some useful regulations, that should be accepted by Georgia”. _has stated  vice president of \"AYFB.

He presents some examples of  EU member states regulations regarding  land alienation:

In Austria,it is not permitted to purchase the land if one has not  proven social-economic and cultural consequences of the concrete region. In addition, foreign citizen has  to  have legally  lived in the territory of the state for  at least 10 years , and his/her purchase should not endanger   important social, economic, cultural and public interests.

In Denmark,  in order to purchase the land, one has to be the citizen or legal entity of EU member state or  have been working legally in Denmark, or , if one is  citizen of any  country, other then EU and  for the last 5 years is registered in

Denmark as permanent resident, and  have gained special allowance from the ministry of justice of Denmark, he/she can also purchase the land.

In Latvia, according to the legislation on the privatization of the agricultural land, citizens or legal entities of countries, other then EU, are prohibited to purchase  the land and the wood.

In Romania,stateless persons,foreign citizens and legal entities are entitled of purchasing land, only according to regulations defined by  international agreement, based on the principle of reciprocity. Meaning, thatit is possible for foreign citizen to purchase land, including agricultural land in Romania, only if  there is a relevant international agreement between countries, considering that concrete  foreign country establishes same the terms for citizens of Romania.

„These are only a short list of countries having strict regulations regarding land alienation. ”AYFB” regards that, the authors  of the draft law should submit  strategic decisions based on the  wide public interests.It has been the positive step, that the Government had prepared amendments, but it is not late yet to submit some corrections to it, derived from the interests of people and the state of Georgia, especially,  when current government has ambition of expressing public will, so that the law in the future hasn’t become the subject for political speculations and in need of further changes or amendments.”_ states ShotaGulbani.