Tk 3,000cr refinance scheme for farmers

The Bangladesh Bank yesterday decided to roll out a fresh refinance scheme worth Tk 3,000 crore for the agriculture sector.

The board of the central bank took the decision at a meeting to protect farmers from the ongoing economic hardship stemming from the coronavirus pandemic. Farmers will be able to take loans at a 4 per cent interest rate from banks under the refinance scheme, said an official of the Agricultural Credit Department of the BB.

Lenders will receive funds at a 1 per cent interest rate from the scheme. This will provide them with an interest rate margin of 3 per cent.

The repayment period for the loans is 18 months, including a grace period of six months.

Banks will give out at least 30 per cent of the targeted amount under the package to the crop sector.

In April last year, the central bank rolled out a stimulus package amounting to Tk 5,000 crore. About 92 per cent of the fund has been disbursed.

The tenure of the fund expired in June. Against this backdrop, the central bank has decided to introduce the new scheme to help farmers.