BB asks banks to give farmers, entrepreneurs low-interest loan

Dhaka, Dec 18 (bdprem.com) – Bangladesh Bank governor Dr Salehuddin Ahmed Tuesday asked private banks to give loans to the small and medium entrepreneurs along with the farmers on easy conditions and low interests. He made the appeal while speaking to the chief executives of private banks at the central bank headquarters on ways to stimulate the sluggish economy in the cyclone-battered areas. Your Ad Here The governor later told the reporters, "We are having consecutive meetings with the private banks to reinforce the loan disbursement activities to make up for the losses in the cyclone-hit areas." "Bangladesh Bank has instructed the private banks to disburse loans among farming, small and medium entrepreneurs on easy conditions and lower interests for the reinforcement of agricultural and rural economy," Salehuddin said. "The target for loan disbursement in the farming sector has been estimated at over Tk 8,000 crore in 2007-2008 fiscal year. The target for the private banks is Tk 1,300 crore. They have already distributed Tk 635 crore from July through November." The central bank chief said he was upset with the response of the private banks. "Only a few banks have responded to our persistent urges," Salehuddin said. The private banks said they were not being able to disburse loans as they did not have offices in all areas across the country. The governor said, "I asked them to distribute loans with the assistance of NGOs in the areas where they don't have offices." He also asked the bankers to provide loans for the storage and marketing of food grains. To a question, he said, "The banks have been asked to disburse farming loans at a minimum interest. They have also been asked to give loans to small and medium entrepreneurs." Deputy governor Nazrul Huda and managing directors of 30 private banks were present at the meeting.