Govt mulls over increasing agri loan disbursement target
Friday, 14 May 2010
The government plans to increase the agriculture loan disbursement target for the next fiscal in a bid to achieve self-sufficiency in food and alleviating poverty through ensuring farmers greater access to finance, Bangladesh Bank (BB) Governor Dr Atiur Rahman has said, reports UNB.
"The target would be slightly higher than in the current fiscal. We've already asked all banks to set their own targets individually as we don't want to impose any target forcibly on them and later we'll come up with actual figures based on their recommendations," the central bank boss said.
The agriculture loan disbursement target of the current fiscal is 115 billion and nearly 78 per cent of the target has so far been achieved until April. "We've two more months in hand and hope to add another 12 per cent to 14 per cent in the remaining two months," Mr Rahman said.
The central bank head revealed that the new agriculture loan policy, which would be more farmer-friendly, would be finalised soon, after receiving recommendations from all. "It'll formally be announced in July and now we're seeking suggestions from all."
Dr Rahman was talking to reporters after an views exchange meeting with a group of field-level branch managers under state-owned commercial and specialised banks in the city Thursday.
The meeting was organised to get feedback on agriculture loan activities from the field-level branch managers of state-owned commercial and specialised banks.
Terming the agricultural sector as the driving force of the economy, Mr Rahman said there was no alternative to patronising agriculture to boost the country's economic growth.
Replying to a question the BB governor said they would take all necessary steps in the upcoming agriculture loan policy to simplify agro-loan disbursement system, make the entire process harassment-free and to save the farmers from brokers' clutches.
"The sanctioned loan money will be directly deposited to the farmers' accounts. No need to take help from any broker. And in the coming policy, we'll clearly mention it," Mr Rahman said, adding that the situation had already improved a lot.
He indicated that some major positive changes would be brought into agriculture loan policy including removal of operational difficulties, simplification of application form, minimising the gap between loan sanction and disbursement, decreasing the processing fee and distributing loans through farmers' own accounts.
When asked about loan defaulters, the BB governor boldly said they were not favouring 'loan exemptions' and wanted to put an end to the culture of 'loan exemption'. "We've also asked bank officials to give their best efforts for ensuring high loan recovery trend."
"The target would be slightly higher than in the current fiscal. We've already asked all banks to set their own targets individually as we don't want to impose any target forcibly on them and later we'll come up with actual figures based on their recommendations," the central bank boss said.
The agriculture loan disbursement target of the current fiscal is 115 billion and nearly 78 per cent of the target has so far been achieved until April. "We've two more months in hand and hope to add another 12 per cent to 14 per cent in the remaining two months," Mr Rahman said.
The central bank head revealed that the new agriculture loan policy, which would be more farmer-friendly, would be finalised soon, after receiving recommendations from all. "It'll formally be announced in July and now we're seeking suggestions from all."
Dr Rahman was talking to reporters after an views exchange meeting with a group of field-level branch managers under state-owned commercial and specialised banks in the city Thursday.
The meeting was organised to get feedback on agriculture loan activities from the field-level branch managers of state-owned commercial and specialised banks.
Terming the agricultural sector as the driving force of the economy, Mr Rahman said there was no alternative to patronising agriculture to boost the country's economic growth.
Replying to a question the BB governor said they would take all necessary steps in the upcoming agriculture loan policy to simplify agro-loan disbursement system, make the entire process harassment-free and to save the farmers from brokers' clutches.
"The sanctioned loan money will be directly deposited to the farmers' accounts. No need to take help from any broker. And in the coming policy, we'll clearly mention it," Mr Rahman said, adding that the situation had already improved a lot.
He indicated that some major positive changes would be brought into agriculture loan policy including removal of operational difficulties, simplification of application form, minimising the gap between loan sanction and disbursement, decreasing the processing fee and distributing loans through farmers' own accounts.
When asked about loan defaulters, the BB governor boldly said they were not favouring 'loan exemptions' and wanted to put an end to the culture of 'loan exemption'. "We've also asked bank officials to give their best efforts for ensuring high loan recovery trend."