BB calls series of meetings with banks, NGOs to devise loan-plans for Sidr-hit people
Saturday, 8 December 2007
Bangladesh Bank (BB) has convened a series of meetings with the commercial banks and NGOs to devise an appropriate mechanism for providing loans to the Sidr-hit people, so they can restart their economic life, reports UNB.
"The meetings are called to identify the problems of delivering financial intervention into the economic activities, particularly the unconventional ones," a senior BB official said.
He also said, the meetings would be a follow up of BB Governor Dr Salehuddin Ahmed's visit to Barisal and Khulna last week when he exchanged views with the commercial bank executives of those areas.
During the exchanges, the bankers apprised the Governor of inadequate branch networking as well as lack of lending programmes, suitable for unconventional activities and businesses like fishermen.
The Governor, in a post-visit press briefing on Wednesday said, BB is contemplating various options to devise suitable lending programmes for the Sidr-hit people on 'as easy as possible' terms, even at zero interest, to rejuvenate the battered economic activities.
The official said, the central bank would start the series of meetings with NGOs on December 11 at BB, followed by nationalised and specialised commercial banks on December 17, and private banks on the following day.
The meetings will discuss the possible options and the problems likely to emerge at the field-level, and decide an appropriate strategy.
On December 19, the BB Governor is scheduled to hold a press briefing to disclose the outcome of the series of meetings.
The central bank was preparing a proposal for submission at the appropriate places for necessary decision in this regard.
The policy options will take into account the financial involvement against waiver of interest and principal against the previous loans as well as subsidy for low interest or zero interest lending.
BB, however, will ensure that the hard-earned financial discipline is not affected by the possible setbacks of aggressive lending.
The BB governor, during his visit to Barisal and Khulna, advised the commercial banks, operating in the south-western districts, to go for aggressive lending to help revive the economic activities.
He also asked them to disburse 70-80 per cent of their respective yearly targets for agriculture loans by December-January on easy terms.
"The meetings are called to identify the problems of delivering financial intervention into the economic activities, particularly the unconventional ones," a senior BB official said.
He also said, the meetings would be a follow up of BB Governor Dr Salehuddin Ahmed's visit to Barisal and Khulna last week when he exchanged views with the commercial bank executives of those areas.
During the exchanges, the bankers apprised the Governor of inadequate branch networking as well as lack of lending programmes, suitable for unconventional activities and businesses like fishermen.
The Governor, in a post-visit press briefing on Wednesday said, BB is contemplating various options to devise suitable lending programmes for the Sidr-hit people on 'as easy as possible' terms, even at zero interest, to rejuvenate the battered economic activities.
The official said, the central bank would start the series of meetings with NGOs on December 11 at BB, followed by nationalised and specialised commercial banks on December 17, and private banks on the following day.
The meetings will discuss the possible options and the problems likely to emerge at the field-level, and decide an appropriate strategy.
On December 19, the BB Governor is scheduled to hold a press briefing to disclose the outcome of the series of meetings.
The central bank was preparing a proposal for submission at the appropriate places for necessary decision in this regard.
The policy options will take into account the financial involvement against waiver of interest and principal against the previous loans as well as subsidy for low interest or zero interest lending.
BB, however, will ensure that the hard-earned financial discipline is not affected by the possible setbacks of aggressive lending.
The BB governor, during his visit to Barisal and Khulna, advised the commercial banks, operating in the south-western districts, to go for aggressive lending to help revive the economic activities.
He also asked them to disburse 70-80 per cent of their respective yearly targets for agriculture loans by December-January on easy terms.