BB to ask banks to give agri rural credit to Sidr survivors
Thursday, 29 November 2007
Siddique Islam
The Bangladesh Bank (BB) will ask eight government-owned banks and financial institutions to intensify disbursement of fresh farm loan along with rural credit to all sections of cyclone-affected people.
The central bank will take the move to ensure credit for all segments of people, particularly in the country's southern districts that have been shattered by cyclone Sidr.
The BB will give the instructions at a review meeting with the banks and financial institutions, scheduled to be held in the central bank today (Thursday).
Meanwhile, BB Governor Salehuddin Ahmed will visit Barisal and Khulna December 2 and December 4 respectively to see how new banking products can be developed for the cyclone-affected people.
The central bank has already informed all commercial bank branches in the country's southern areas to prepare their report on how to rejuvenate the post-cyclone economy in consultation with the local people.
"The reports will be discussed by the central bank chief when he will hold meetings with local bankers," a BB senior official told the FE Wednesday.
He also said the BB governor will also meet with the local businessmen and discuss about the ways to boost economic activities in the region.
"We will ask the banks and financial institutions for taking effective measures to provide agriculture loan along with rural credit to cyclone-hit areas of the country," another senior BB official told the FE.
He also said the central bank is now closely monitoring the overall agriculture credit disbursement process, particularly in flood-hit and cyclone-affected areas of the country.
The central bank earlier asked the banks and financial institutions to intensify disbursement of fresh agriculture credit to the cyclone-affected farmers on easy terms and conditions.
Under the new measures, the cyclone-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision on down payment in case of loan rescheduling.
The cyclone Sidr that battered the country on November 15 last partially or totally damaged standing crops on around 0.5 million hectares of land in the south and south-western districts. An initial estimate says around 0.6 million tonnes of rice, particularly the Aman paddy, were lost due to the severe storm.
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 areas.
The meeting will also ask the banks and financial institutions for taking necessary measures immediately to achieve the agro-credit disbursement target by the end of this fiscal.
The central bank has set the credit target at Tk 81.92 billion, which includes Tk 13.47 billion from private commercial banks and the rest from government-owned banks and financial institutions for disbursement among farmers across the country.
The Bangladesh Bank (BB) will ask eight government-owned banks and financial institutions to intensify disbursement of fresh farm loan along with rural credit to all sections of cyclone-affected people.
The central bank will take the move to ensure credit for all segments of people, particularly in the country's southern districts that have been shattered by cyclone Sidr.
The BB will give the instructions at a review meeting with the banks and financial institutions, scheduled to be held in the central bank today (Thursday).
Meanwhile, BB Governor Salehuddin Ahmed will visit Barisal and Khulna December 2 and December 4 respectively to see how new banking products can be developed for the cyclone-affected people.
The central bank has already informed all commercial bank branches in the country's southern areas to prepare their report on how to rejuvenate the post-cyclone economy in consultation with the local people.
"The reports will be discussed by the central bank chief when he will hold meetings with local bankers," a BB senior official told the FE Wednesday.
He also said the BB governor will also meet with the local businessmen and discuss about the ways to boost economic activities in the region.
"We will ask the banks and financial institutions for taking effective measures to provide agriculture loan along with rural credit to cyclone-hit areas of the country," another senior BB official told the FE.
He also said the central bank is now closely monitoring the overall agriculture credit disbursement process, particularly in flood-hit and cyclone-affected areas of the country.
The central bank earlier asked the banks and financial institutions to intensify disbursement of fresh agriculture credit to the cyclone-affected farmers on easy terms and conditions.
Under the new measures, the cyclone-hit farmers will be eligible for fresh credit after rescheduling their previous classified loans. The banks, if necessary, may relax the provision on down payment in case of loan rescheduling.
The cyclone Sidr that battered the country on November 15 last partially or totally damaged standing crops on around 0.5 million hectares of land in the south and south-western districts. An initial estimate says around 0.6 million tonnes of rice, particularly the Aman paddy, were lost due to the severe storm.
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 areas.
The meeting will also ask the banks and financial institutions for taking necessary measures immediately to achieve the agro-credit disbursement target by the end of this fiscal.
The central bank has set the credit target at Tk 81.92 billion, which includes Tk 13.47 billion from private commercial banks and the rest from government-owned banks and financial institutions for disbursement among farmers across the country.