Farmers to get Tk 20,400 crore loan

Economic Correspondent: Bangladesh Bank (BB) unveiled the new "Agriculture and Rural Credit Policy" with a target to disburse Tk 20,400 crore loan by banks for the fiscal year of 2017-18.

Central Bank Deputy Governor SM Moniruzzaman announced the policy at Jahangir Alam Conference Hall of Bangladesh Bank on Thursday. Concerned officials of Bangladesh Bank were present during this time.

Announcing the policy, SM Moniruzzaman said the credit target was set keeping consistency with the government's agriculture-friendly policy.

Three core issues-- poverty alleviation, freeing people from hunger and ensuring good health -- got priority in the policy, he said.

The central bank deputy governor said the highest ceiling of interest rate of the agriculture credit was reduced to 9 percent from the last fiscal year's 10 percent.

"The loan figure is 16.24 percent higher than the previous credit target," said Moniruzzaman said, adding the state-owned and specialised banks will provide Tk 9,590 crore while the private banks will distribute Tk 10,810 crore.

He, however, said the last fiscal year's credit disbursement target was exceeded as banks provided Tk 20,998.70 crore to some 3,856,635 farmers and rural people.

risingbd/Dhaka/July 27, 2017/Ashraf/Amirul