BB announces Tk 26,292cr credit programme for rural economy

In response to the financial crisis caused by the coronavirus pandemic, Bangladesh Bank on Wednesday announced a Tk26,292 crore agriculture and rural credit programme for the 2020-21 fiscal year with three objectives -- poverty alleviation, development of the rural economy and freeing the country from hunger.

The amount is 8.99 percent higher than the outgoing fiscal's credit programme.
 
The credit disbursement programme was announced in line with the government's agricultural policy and also to deal with the impacts of coronavirus on the rural economy, said a media release of the central bank.
 
Of the targeted loan amount, state-owned banks and financial institutions will distribute Tk 11,045 crore while private and foreign banks will distribute Tk 15,247 crore.
 
In the previous fiscal year (2019-20), the credit target was Tk 22,749 crore and 94.30 percent of which was distributed among 3.66 million people in rural areas.
 
Of the amount, 1,514,367 women received Tk 8,359 crore.
 
The central bank has been running a refinancing credit scheme of Tk 5,000 crore to offset the impacts of coronavirus in agriculture allowing farmers to receive loans at 4 percent interest for spice and corn-related farming.