Banks can reschedule agricultural loans now

The central bank issued a fresh rescheduled policy on short-term agriculture loans Monday aiming to boost production through facilitating farmers across the country, officials said.

Under the policy, the banks are allowed to reschedule such agriculture loans under 'banker-client' relationship through relaxation of down payment. In some cases, such loans can be rescheduled even without any down payment.

"We've issued the policy to boost the agriculture production through providing financial support to the farmers," a senior official of the Bangladesh Bank (BB) told the FE.

He also said it will also help strengthen the ongoing financial inclusion programmes.

The farmers will be eligible for getting fresh agriculture loans without depositing any compromised amount after rescheduling such loans.

The banks may reschedule the agriculture credits after disposal of the certificate cases through mutual agreements with the clients.

The BB's latest move came against the backdrop of rising trend in the number of certificate cases against the farmers across the country.

The number of unsettled certificate cases stood rose to 205,372 as of November 30, 2014 from 202,274 as of January 31 last year while the classified loans involving the certificate cases stood at Tk 5.70 billion from Tk 5.53 billion.

Such rescheduled facility will continue until December, 2015.

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