Saving rural economy

More than 70 per cent of the demand for small loans in rural Bangladesh is met by the non-government organisations, which are also called microfinance organisations. Three major players - BRAC, Grameen Bank and ASA - control a significant portion of the loans. Disbursement of loans by the three has declined by 80 per cent in recent months due to the coronavirus crisis.

This is a matter of serious concern as people have lost their capacity to take and repay loans. As a result, the rural economy may contract and many people may lose working opportunities. The rate of loan recovery has also declined by 75 per cent. So, it is high time to take special measures for the rural areas.

SM Badal

Shyamoli, Dhaka

[email protected]