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Stimulus for farm sector

BB unveils Tk 30b fresh refinancing scheme

FE REPORT | September 15, 2021 00:00:00

A Tk 30-billion fresh refinancing scheme has been under the stimulus package for agriculture for bolstering the sector as part of Bangladesh's economic recovery, officials said.

Low-cost funds from the package will be used to help in offsetting the adverse impact of the ongoing Covod-19 pandemic on the priority sector, they added.

The participatory banks of the scheme will get refinance facilities from the central bank at 1.0 percent interest, according to a notification issued Tuesday by the Bangladesh Bank (BB).

"The interest rate for the farmers has been fixed at maximum 4.0 per cent and it will be the same for old-and new loan-recipients," it says.

Earlier on August 23, the board of directors of the central bank had approved the refinancing scheme to help Covid-hit agriculture sector.

Under the scheme, the money will come from BB's own fund and its tenure will end on June 30, 2022.

Interested scheduled banks have been asked to sign participation agreements with the Agricultural Credit Department of the central bank within 15 days from the issuance of the notification.

The special refinancing fund has been formed for the agriculture sector as second phase of the refinancing facility for the sector, which came to a great help when economic activity was upended in Bangladesh and countries across the globe.

The BB earlier had formed a special refinancing scheme worth Tk 50 billion for the agricultural sector on the same grounds.

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