Target set to disburse Tk 90b farm credit
FE Report | Tuesday, 10 June 2008
The government has set a target to disburse Tk 90 billion as agriculture credit through banks and non-banking financial institutions in fiscal 2008-09.
Finance Adviser Mirza Azizul Islam disclosed the target in his budget speech Monday.
"In the current fiscal year, there was a target to disburse agriculture credit to the tune of Tk 83.08 billion through various banks and financial institutions including Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB)," the finance adviser said.
Against this, an amount of Tk 67..31 billion has been disbursed until April 2008. This is 81 per cent of the target and 57 per cent higher than the disbursement of the previous year, according to the budget document.
In the current fiscal year, the Bangladesh Bank (BB) provided Tk 5.0 billion and Tk 2.0 billion to BKB and RAKUB respectively to refinance their credit disbursements, the finance adviser added.
"Disbursement of agriculture credit during July-April, 2007-08 stood higher at Tk 67.31 billion due to inclusion of private commercial banks compared to Tk 42.94 billion during July-April 2006-07," the BB said in its Major Economic Indicators: Monthly Update for May, 2008.
The loans have been given to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation, sources in the central bank said.
During the period, recovery of agriculture credit also stood higher at Tk 49.73 billion due to inclusion of private commercial banks compared to Tk 37.87 billion in the corresponding period of the previous fiscal, according to the Update.
"The position of overdue agriculture credit as percentage of total outstanding improved, decreasing from 42.02 at the end of April, 2007 to 35.49 at the end of April 2008," it noted.
Finance Adviser Mirza Azizul Islam disclosed the target in his budget speech Monday.
"In the current fiscal year, there was a target to disburse agriculture credit to the tune of Tk 83.08 billion through various banks and financial institutions including Bangladesh Krishi Bank (BKB) and Rajshahi Krishi Unnayan Bank (RAKUB)," the finance adviser said.
Against this, an amount of Tk 67..31 billion has been disbursed until April 2008. This is 81 per cent of the target and 57 per cent higher than the disbursement of the previous year, according to the budget document.
In the current fiscal year, the Bangladesh Bank (BB) provided Tk 5.0 billion and Tk 2.0 billion to BKB and RAKUB respectively to refinance their credit disbursements, the finance adviser added.
"Disbursement of agriculture credit during July-April, 2007-08 stood higher at Tk 67.31 billion due to inclusion of private commercial banks compared to Tk 42.94 billion during July-April 2006-07," the BB said in its Major Economic Indicators: Monthly Update for May, 2008.
The loans have been given to agro-based eight sub-sectors like crops, irrigation equipment, livestock, agricultural products marketing, fisheries and poverty alleviation, sources in the central bank said.
During the period, recovery of agriculture credit also stood higher at Tk 49.73 billion due to inclusion of private commercial banks compared to Tk 37.87 billion in the corresponding period of the previous fiscal, according to the Update.
"The position of overdue agriculture credit as percentage of total outstanding improved, decreasing from 42.02 at the end of April, 2007 to 35.49 at the end of April 2008," it noted.