Banks asked to reschedule poultry loans without down-payment
Tuesday, 21 April 2009
Siddique Islam
The central bank has asked eight state-owned commercial banks and financial institutions to reschedule classified loans outstanding with the poultry farmers without any down payment.
The banks and financial institutions have been instructed that the poultry sector loans will be treated as agricultural sub-sector credit instead of commercial loans.
The Bangladesh Poultry Industries Association (BPIA) welcomed the BB's latest moves, saying that measure will greatly help the bird-flu stricken poultry sector.
The Bangladesh Bank (BB) issued a circular in this connection Monday and told the managing directors of state-owned banks and financial institutions to follow the instructions properly in order to help revive the recent bird-flu affected poultry sector.
"We've taken the measure for the bird flu-hit poultry farms to facilitate their rehabilitation," a BB senior official told the FE on the day after issuing the circular.
He also said the interest rates on lending in the poultry sector will come down as the sector has been recognized as an agricultural sub-sector instead of commercial.
Under the new provisions, the interest rates on lending in the poultry sector will come down to 8-11 per cent from the existing 13-14 per cent, the market operators said.
"The instruction comes into effect immediately and would continue until the next order is issued," the central bank said in its circular.
Besides, the BB asked the banks to provide such facilities to the owners of affected poultry farms without any harassment through proper through monitoring, the central bank official said.
The eight state-owned banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samabaya Bank Limited (BSBL).
"We want re-financing facility for reviving the affected poultry farms across the country," BPIA President Syed Abu Siddique told the FE, adding that nearly 40 per cent of the country's 150,000 poultry farms have already closed down following the outbreak of bird flu, leaving around 2.0 million people jobless.
The country's poultry farm owners earlier sought the government's initiative to make low-cost fresh credit available to them and rescheduling of bank loans for salvaging the Tk 150-billion industry.
On 15 April last, the BPIA urged Finance Minister AMA Muhith at a meeting for taking necessary measures to establish a modern laboratory facility to help prevent the local poultry farms from being attacked by the deadly avian influenza virus - bird flu - in future.
On March 19, 2008, the central bank 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 for the affected poultry sector.
The banks have been also asked to provide emergency loans to bird flue-hit poultry farms to facilitate their rehabilitation.
The central bank has asked eight state-owned commercial banks and financial institutions to reschedule classified loans outstanding with the poultry farmers without any down payment.
The banks and financial institutions have been instructed that the poultry sector loans will be treated as agricultural sub-sector credit instead of commercial loans.
The Bangladesh Poultry Industries Association (BPIA) welcomed the BB's latest moves, saying that measure will greatly help the bird-flu stricken poultry sector.
The Bangladesh Bank (BB) issued a circular in this connection Monday and told the managing directors of state-owned banks and financial institutions to follow the instructions properly in order to help revive the recent bird-flu affected poultry sector.
"We've taken the measure for the bird flu-hit poultry farms to facilitate their rehabilitation," a BB senior official told the FE on the day after issuing the circular.
He also said the interest rates on lending in the poultry sector will come down as the sector has been recognized as an agricultural sub-sector instead of commercial.
Under the new provisions, the interest rates on lending in the poultry sector will come down to 8-11 per cent from the existing 13-14 per cent, the market operators said.
"The instruction comes into effect immediately and would continue until the next order is issued," the central bank said in its circular.
Besides, the BB asked the banks to provide such facilities to the owners of affected poultry farms without any harassment through proper through monitoring, the central bank official said.
The eight state-owned banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samabaya Bank Limited (BSBL).
"We want re-financing facility for reviving the affected poultry farms across the country," BPIA President Syed Abu Siddique told the FE, adding that nearly 40 per cent of the country's 150,000 poultry farms have already closed down following the outbreak of bird flu, leaving around 2.0 million people jobless.
The country's poultry farm owners earlier sought the government's initiative to make low-cost fresh credit available to them and rescheduling of bank loans for salvaging the Tk 150-billion industry.
On 15 April last, the BPIA urged Finance Minister AMA Muhith at a meeting for taking necessary measures to establish a modern laboratory facility to help prevent the local poultry farms from being attacked by the deadly avian influenza virus - bird flu - in future.
On March 19, 2008, the central bank 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 for the affected poultry sector.
The banks have been also asked to provide emergency loans to bird flue-hit poultry farms to facilitate their rehabilitation.