BB asks banks to take soft stand on poultry sector

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FE Report
With a view to helping the bird flu- stricken poultry sector, the central bank issued Wednesday a circular requesting the banks and financial institutions to take a soft approach towards poultry farms as far as recovery and sanction of loans are concerned.
In the circular, the Bangladesh Bank (BB) requested the banks and financial institutions to consider suspension of recovery of the principal amount of loans for a period of one year and interest thereof for six months.
Banks have been asked to provide emergency loans to bird flue-hit poultry farms to facilitate their rehabilitation.
The BB in the circular asked the chief executives of all scheduled banks, non-banking financial institutions (NBFIs), Bangladesh Rural Development Board (BRDB) and Bangladesh Samabaya Bank Limited (BSBL) to follow the new instructions for providing fresh credit to the poultry industry.
The commercial banks have been instructed to relax credit rules and regulations, allowing bird flu- affected farms to take fresh credit after rescheduling their overdue loans.
"We are sympathetic to the owners of affected poultry farms," BB Governor Salehuddin Ahmed told reporters after issuing the circular, adding that the bankers will have to take into consideration the situation in the sector.
He also said the central bank advised the banks and NBFIs to provide fresh credit to the bird flu- affected poultry farms, charging nominal interest rates.
"We are considering the importance of poultry sector from both in economic and health perspectives as the poultry meets our nutritional needs," the central bank chief observed.