BB sees Tk 9,500 cr farm loan this year
Monday, 25 August 2008

Bangladesh Bank has sets its sight on distributing nearly Tk 9,500 crore loans in the ongoing fiscal year— some 13 percent higher than the target of last year—through the banks to lift farm production, an official said, reports

"Keeping the present world food crisis in consideration this year the target of distributing agricultural loan has been fixed at Tk 9,379 crore. It is about 13 percent higher than last year's target," Bangladesh Bank deputy governor Nazrul Huda said Sunday.
He said for the first time agricultural loan disbursement exceeded the target of Tk 8,308.60 crore, by Tk 272 crore, in the last fiscal year.
The central bank, he said, took some effective steps to distribute agricultural loan to offset the losses caused by the twin floods and cyclone Sidr. The banks were directed to open cells to monitor the distribution of agricultural loan.
The effective disbursement had a positive impact on the bumper Boro production and hoped the same would happen in the case of Aman.
According to the Bangladesh Bank's agricultural loan and special programmes division, the target of distributing agriculture loan by state-owned commercial banks Sonali, Janata and Agrani and two specialised banks Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank for this fiscal year has been fixed at Tk 7,779.23 crore.
The private banks have been set the target of distributing the remaining Tk 1,600 crore. Last year the target was Tk 1000 crore.
The central bank for the first time last year fixed the target for the private banks, who previously would not make substantial investment in the agriculture sector, the official added.
Huda said in 2007-2008 fiscal year the private banks distributed agricultural loan more than the target. The banks distributed farm loan worth Tk 8,580.66 crore and recovered Tk 6,003.70 crore.
Last year the target of distributing agricultural loan. The banks distributed agricultural loan worth Tk 272 crore more that target fixed for them.
Huda said the central bank will intensify monitoring to make sure genuine farmers get loan in time without harassment.

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