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Hungary prolongs the ban on purchase of the foreigners
Hungary
Wednesday 24 March 2010
NAD
Hungary wishes to prolong the moratorium forbidding the foreigners to buy farmlands not to engender speculation.
Half of the total surface of Hungary is constituted by farmlands. This proportion offers to the country an important agricultural development potential and is at the same time a very precious natural resource.
These farmlands were exploited by farms of State and cooperatives until 1989, and then were privatized at the beginning of 1990s.
Because of the low market value of the Hungarian lands, compared with the prices practised in the Western Europe and to avoid any speculation in land, a law restricted the acquisition in 1995 to the only physical persons, of Hungarian nationality.
Hungary, which entered in the EU on May 1st, 2004, was authorized to maintain this law during a period of transition of 7 years until April, 2011.
The services of the Prime Minister Gordon Bajnai, have just announced that "The government decided to do a request with the European Union to prolong of 3 years the moratorium on the purchase of the Hungarian farmlands by foreigners (...) To protect lands and Hungarian owners of the speculative transactions ".
Source hulala.
