Most PCBs lag behind in providing loans for post-Sidr rehabilitation
Wednesday, 19 December 2007
FE Report
Most of the country's private commercial banks (PCBs) are lagging behind in disbursing loans to the agriculture sector and small and medium enterprises (SME) in the cyclone Sidr-hit southwestern region.
The Bangladesh Bank (BB) Governor Salehuddin Ahmed stated this Tuesday following a review meeting of the BB with all the PCBs at the central bank's conference room.
Only a few of the PCBs have so far extended loans to the agriculture sector, the BB governor told the newsmen after the meeting.
"During the meeting we have asked the PCBs to disburse enhanced amount of loans to agriculture sector and small and medium enterprises for strengthening the country's rural economy, especially in the cyclone-hit southwestern region," Ahmed said.
The loans should be processed and disbursed within the shortest possible time at easy terms and low interest rates, the BB instructed.
In getting fresh loans the provision of down payments against the default loans must also be simplified for the affected farmers, the meeting was notified.
The PCBs have also been instructed to strengthen their individual monitoring so that the affected farmers get fresh loans without much delay and hassle.
The country's central bank also asked the PCBs to provide necessary funds to the rural farmers and entrepreneurs for marketing of agro-products across the country.
The meeting observed that the PCBs disbursed loans amounting to Tk 6.35 billion in agriculture sector across the country during July-November, 2007.
The loan disbursement target for agriculture sector as set for the PCBs during the current fiscal year is Tk 13 billion.
Regarding the PCBs that do not have branches in rural areas the BB asked them to establish links with the non-government organisations (NGOs) for disbursement of loans in agriculture and SMEs.
Tuesday's meeting was part of the BB's series of meetings with all stakeholders to ensure that loans were disbursed by the commercial banks to bring back dynamism in the rural economy.
The managing directors (MDs) and chairmen of the PCBs attended Tuesday's meeting.
The BB governor will hold a press briefing today (Wednesday) to share the overall scenario with the media.
Most of the country's private commercial banks (PCBs) are lagging behind in disbursing loans to the agriculture sector and small and medium enterprises (SME) in the cyclone Sidr-hit southwestern region.
The Bangladesh Bank (BB) Governor Salehuddin Ahmed stated this Tuesday following a review meeting of the BB with all the PCBs at the central bank's conference room.
Only a few of the PCBs have so far extended loans to the agriculture sector, the BB governor told the newsmen after the meeting.
"During the meeting we have asked the PCBs to disburse enhanced amount of loans to agriculture sector and small and medium enterprises for strengthening the country's rural economy, especially in the cyclone-hit southwestern region," Ahmed said.
The loans should be processed and disbursed within the shortest possible time at easy terms and low interest rates, the BB instructed.
In getting fresh loans the provision of down payments against the default loans must also be simplified for the affected farmers, the meeting was notified.
The PCBs have also been instructed to strengthen their individual monitoring so that the affected farmers get fresh loans without much delay and hassle.
The country's central bank also asked the PCBs to provide necessary funds to the rural farmers and entrepreneurs for marketing of agro-products across the country.
The meeting observed that the PCBs disbursed loans amounting to Tk 6.35 billion in agriculture sector across the country during July-November, 2007.
The loan disbursement target for agriculture sector as set for the PCBs during the current fiscal year is Tk 13 billion.
Regarding the PCBs that do not have branches in rural areas the BB asked them to establish links with the non-government organisations (NGOs) for disbursement of loans in agriculture and SMEs.
Tuesday's meeting was part of the BB's series of meetings with all stakeholders to ensure that loans were disbursed by the commercial banks to bring back dynamism in the rural economy.
The managing directors (MDs) and chairmen of the PCBs attended Tuesday's meeting.
The BB governor will hold a press briefing today (Wednesday) to share the overall scenario with the media.