Banks to reschedule agri credits as long-term loans

---

FE Report
The central bank has allowed the commercial banks to reschedule their agricultural credits as long-term loans to facilitate farmers across the country.
"We've issued a directive clarifying rescheduling of agricultural credits by the commercial banks to strengthen the overall disbursement of farm loans ahead of the Boro season," a senior official of the Bangladesh Bank (BB) told the FE Sunday.
He also said the central bank has issued the notification after founding ambiguities in rescheduling of farm loans by the commercial banks.
"We are hopeful that the banks would move forward to reschedule the farm loans in line with the BB's latest circular, the BB official added.
The central bank issued a circular in this connection Sunday, asking the chief executives and managing directors of all 48 scheduled banks to follow the latest instruction for rescheduling agricultural credit.
"There is a scope of rescheduling the short-term agricultural loans, which would be treated as long-term ones after making required down payment," the BB said in its circular.
To reschedule the term loans for the first-time, borrowers have to pay minimum 15 per cent of expired installments or 10 per cent of total dues, whichever is lower, according to the existing provisions.