Market digest

BB extends agro loans disbursement time until Dec 31

Staff Correspondent

21 September, 2020 12:00 AM printer

BB extends agro loans disbursement time until Dec 31

Bangladesh bank has extended agricultural loans disbursement time for the scheduled banks from the government declared Tk 50 billion stimulus package to December 31 from September 30.

In a circular on Sunday, the central bank rescheduled the deadline of agricultural loan disbursement as a big volume of loans remained undisbursed because of flood and coronavirus pandemic.

Earlier on April the Prime Minister Sheikh Hasina announced a new stimulus package of Tk 50 billion  to provide financial assistance to small and medium farmers in rural areas for boosting agricultural production facing the Covid-19 fallout.

The government will provide interest subsidy for the next one year to increase the disbursement of low interest loans in the agricultural sector.

At the farmer level, the interest rate has been fixed at 4 percent. The central bank will provide the remaining 5 percent interest as subsidy to banks.