Bangladesh Bank unveils agriculture credit policy

Aims to disburse Tk 20,400 crore loan in 2017-18

27 Jul 2017, 21:12

Online Desk

Dhaka: Bangladesh Bank on Thursday 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.

Announcing the policy, central bank Deputy Governor 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.

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.