BB asks banks to intensify agri-credit distribution in cyclone-hit areas
Tuesday, 20 November 2007
FE Report
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to intensify disbursement of fresh agriculture credit to the cyclone-affected farmers, official sources said.
The central bank took the move as part of the ongoing post cyclone rehabilitation programmes in the country's south and southwestern coastal areas.
Under the move, the cyclone-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision for making down payment in case of loan rescheduling.
The BB issued a circular in this connection Monday and asked the managing directors of the banks and financial institutions concerned to follow such instructions on disbursement of agro-credit for post-cyclone rehabilitation.
"The instruction will be applicable only to the country's cyclone-hit areas," a BB senior official told the FE Monday, adding that the central bank's branch offices will monitor the overall agro-credit disbursement position.
The banks and financial institutions to be covered by the circular are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
The loans to be provided to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation.
Earlier, the central bank asked the banks and financial institutions to set up credit monitoring and complaint cells at different levels to ensure monitoring of the overall agro-credit disbursement.
"Measures have also been taken to ensure that the farmers receive fresh credit from banks within the shortest possible time without any hassles under the fresh loan facilities," the central bank said in its circular.
The BB also asked the banks and financial intuitions to provide the statements relating to the agro-credit disbursement on fortnightly basis.
Code named as SIDR, the cyclonic storm Thursday last partially or totally damaged standing crops on around 0.5 million hectares of land in the south and south-western districts, causing rice crop loss of around 0.6 million tonnes, particularly the aman paddy, according to the initial assessment by the agriculture ministry.
The cyclone also damaged winter vegetables, oil seeds, pulses, transplanted aman paddy of local and high yielding varieties and seedbeds of boro paddy on vast tracts of land.
Meanwhile, the central bank has set a target of Tk 76.98 billion, which includes an amount of Tk 10.78 billion from private commercial banks -- both local and foreign - for disbursement among farmers across the country.
According to the BB's statistics, the state-owned eight banks and financial institutions disbursed agricultural credit worth Tk 52.93 billion in fiscal 2006-07, which is over 83 per cent of the target of Tk 63.51 billion.
In 2005-06, the banks and financial institutions disbursed agricultural credit worth Tk 54.96 billion and in 2004-05, the amount was Tk 49.57 billion.
The Bangladesh Bank (BB) has asked eight state-owned banks and financial institutions to intensify disbursement of fresh agriculture credit to the cyclone-affected farmers, official sources said.
The central bank took the move as part of the ongoing post cyclone rehabilitation programmes in the country's south and southwestern coastal areas.
Under the move, the cyclone-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision for making down payment in case of loan rescheduling.
The BB issued a circular in this connection Monday and asked the managing directors of the banks and financial institutions concerned to follow such instructions on disbursement of agro-credit for post-cyclone rehabilitation.
"The instruction will be applicable only to the country's cyclone-hit areas," a BB senior official told the FE Monday, adding that the central bank's branch offices will monitor the overall agro-credit disbursement position.
The banks and financial institutions to be covered by the circular are: Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
The loans to be provided to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation.
Earlier, the central bank asked the banks and financial institutions to set up credit monitoring and complaint cells at different levels to ensure monitoring of the overall agro-credit disbursement.
"Measures have also been taken to ensure that the farmers receive fresh credit from banks within the shortest possible time without any hassles under the fresh loan facilities," the central bank said in its circular.
The BB also asked the banks and financial intuitions to provide the statements relating to the agro-credit disbursement on fortnightly basis.
Code named as SIDR, the cyclonic storm Thursday last partially or totally damaged standing crops on around 0.5 million hectares of land in the south and south-western districts, causing rice crop loss of around 0.6 million tonnes, particularly the aman paddy, according to the initial assessment by the agriculture ministry.
The cyclone also damaged winter vegetables, oil seeds, pulses, transplanted aman paddy of local and high yielding varieties and seedbeds of boro paddy on vast tracts of land.
Meanwhile, the central bank has set a target of Tk 76.98 billion, which includes an amount of Tk 10.78 billion from private commercial banks -- both local and foreign - for disbursement among farmers across the country.
According to the BB's statistics, the state-owned eight banks and financial institutions disbursed agricultural credit worth Tk 52.93 billion in fiscal 2006-07, which is over 83 per cent of the target of Tk 63.51 billion.
In 2005-06, the banks and financial institutions disbursed agricultural credit worth Tk 54.96 billion and in 2004-05, the amount was Tk 49.57 billion.