Loan repayment in cyclone-hit areas

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IT is a positive move by Grameen Bank (GB) that it has suspended its loan recovery drive in the cyclone-affected areas in Patuakhali and Pirojpur districts until June 30, 2008. Reports appearing in the media indicated that the GB would be considering further extension of this deadline. The small loanees in the cyclone-battered areas need this kind of pro-active supports at this hour of distress. They have no capacity to repay micro-credits or small loans during this period as they are facing severe dislocations to their normal economic activities. Under such circumstances, it will be extremely useful if the loan-giving institutions, particularly the micro-credit organisations, put on hold their loan recovery drive, considering the hardship facing the distressed people.
The cyclone-affected loanees of micro-credits do also need the waving of interest charges on the loans given to them earlier for the period of their hardship until resumption of normal economic activities. The GB has befittingly addressed this need under its recently announced 'disaster combat policy'. All concerned micro-credit organisation should also take the cue from the GB's programme for disbursement of interest-free loans for constructing the houses ravaged by the devastating cyclone. If such organisations come forward for extending supports to the distressed people in the areas hit by one of the worst natural disasters in the recent history of the nation, the rehabilitation activities will get a momentum.
Abdul Haq
Rayear Bazar, Dhaka.