BB to request banks to provide easy loans to Sidr-hit fishermen
Tuesday, 27 November 2007
Siddique Islam
The Bangladesh Bank (BB) will advise the commercial banks to provide better and cheaper short term loans to the fishermen of the cyclone-affected areas in the country.
The advice is expected to be given at the bankers' meeting to be held at the central bank today (Tuesday) with the BB Governor Salehuddin Ahmed in the chair, official sources said.
The central bank has taken the move to finance the fishermen by the commercial banks in line with request made by the chief adviser recently.
Chief adviser (CA) Dr Fakhruddin Ahmed wrote a letter to the Bangladesh Bank governor recently suggesting measures to rehabilitate the cyclone-hit fishermen in the country's southern districts.
"As I tour the cyclone devastated area and review the requirements for agriculture sector rehabilitation, it seems to me that a better credit system for the fishermen of southern districts/ upazilas of Bangladesh in needed not only to rehabilitate the cyclone affected fishermen but also to provide better and cheaper short term financing for these fishermen in the long run," the CA said.
Fakhruddin, who was the immediate past governor of the central bank also suggested the BB for taking measures to develop a banking product for the fishermen.
"....there is an opportunity now to do something about this; the banks, particularly Bangladesh Krishi Bank (BKB) and public sector banks working is those areas must develop a product specially suited for the fishermen," he said, adding: "If they already have such a product, then they should expand its coverage now."
During the meeting, the central bank will also ask the banks to provide loans to timbers traders at a subsidised interest rate to facilitate timbers trading in the cyclone-hit areas.
"We will ask the banks to extend all possible cooperation to strengthen the ongoing rehabilitation programmes in the cyclone affected areas," a BB senior official told the FE Monday.
He also said the central bank will ask the commercial banks for taking special measures to intensify disbursement of fresh credit to the cyclone-hit people in the country's coastal areas.
Cyclone, Sidr that struck the country on November 15 partially or totally damaged standing crops on around 0.5 million hectares of land in south and south-western coastal districts, causing a loss of around 0.6 million tonnes of food crops, particularly the Aman paddy, according to the initial assessment of 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 a vast area.
The meeting may discuss the overall trading activities of the government-approved securities in the secondary market, the sources said.
The central bank has already opened a new window for trading only government bonds aiming to bring dynamism in the country's secondary bond market.
The meeting is likely to review the latest situation of the country's inter-bank foreign exchange market.
The BB will also ask the commercial banks to check the misuse of electricity to help maintain the normal supply of power across the country.
"The central bank will ask the banks to cut down unnecessary electricity usage in line with the finance ministry advices," another BB official said.
The finance ministry has already advised the central bank to inform the commercial banks about saving electricity in all of their branches, he added.
Currently 48 scheduled banks are operating their business through 6,625 branches across the country.
The central bank will also ask the banks to realise export proceeds in line with the existing rules and regulations.
For delay in repatriation or non-realisation of export proceeds, exporters and the authorised dealers or banks and their officials certifying the export forms are liable to punitive action under the Foreign Exchange Regulation Act, 1947.
The meeting will also review the overall performances of the country's banking sector, official sources said.
The Bangladesh Bank (BB) will advise the commercial banks to provide better and cheaper short term loans to the fishermen of the cyclone-affected areas in the country.
The advice is expected to be given at the bankers' meeting to be held at the central bank today (Tuesday) with the BB Governor Salehuddin Ahmed in the chair, official sources said.
The central bank has taken the move to finance the fishermen by the commercial banks in line with request made by the chief adviser recently.
Chief adviser (CA) Dr Fakhruddin Ahmed wrote a letter to the Bangladesh Bank governor recently suggesting measures to rehabilitate the cyclone-hit fishermen in the country's southern districts.
"As I tour the cyclone devastated area and review the requirements for agriculture sector rehabilitation, it seems to me that a better credit system for the fishermen of southern districts/ upazilas of Bangladesh in needed not only to rehabilitate the cyclone affected fishermen but also to provide better and cheaper short term financing for these fishermen in the long run," the CA said.
Fakhruddin, who was the immediate past governor of the central bank also suggested the BB for taking measures to develop a banking product for the fishermen.
"....there is an opportunity now to do something about this; the banks, particularly Bangladesh Krishi Bank (BKB) and public sector banks working is those areas must develop a product specially suited for the fishermen," he said, adding: "If they already have such a product, then they should expand its coverage now."
During the meeting, the central bank will also ask the banks to provide loans to timbers traders at a subsidised interest rate to facilitate timbers trading in the cyclone-hit areas.
"We will ask the banks to extend all possible cooperation to strengthen the ongoing rehabilitation programmes in the cyclone affected areas," a BB senior official told the FE Monday.
He also said the central bank will ask the commercial banks for taking special measures to intensify disbursement of fresh credit to the cyclone-hit people in the country's coastal areas.
Cyclone, Sidr that struck the country on November 15 partially or totally damaged standing crops on around 0.5 million hectares of land in south and south-western coastal districts, causing a loss of around 0.6 million tonnes of food crops, particularly the Aman paddy, according to the initial assessment of 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 a vast area.
The meeting may discuss the overall trading activities of the government-approved securities in the secondary market, the sources said.
The central bank has already opened a new window for trading only government bonds aiming to bring dynamism in the country's secondary bond market.
The meeting is likely to review the latest situation of the country's inter-bank foreign exchange market.
The BB will also ask the commercial banks to check the misuse of electricity to help maintain the normal supply of power across the country.
"The central bank will ask the banks to cut down unnecessary electricity usage in line with the finance ministry advices," another BB official said.
The finance ministry has already advised the central bank to inform the commercial banks about saving electricity in all of their branches, he added.
Currently 48 scheduled banks are operating their business through 6,625 branches across the country.
The central bank will also ask the banks to realise export proceeds in line with the existing rules and regulations.
For delay in repatriation or non-realisation of export proceeds, exporters and the authorised dealers or banks and their officials certifying the export forms are liable to punitive action under the Foreign Exchange Regulation Act, 1947.
The meeting will also review the overall performances of the country's banking sector, official sources said.