Dhaka, May 13 (UNB) - The government plans to increase the agriculture loan disbursement target for the next fiscal in a bid to achieve self-sufficiency in food and alleviating poverty through ensuring greater access for farmers to finance, central bank governor Dr Atiur Rahman said on Thursday.
“The target would be slightly higher than in the current fiscal. We’ve already asked all banks to set their own targets individually as we don’t want to impose any target forcibly on them and later we’ll come up with actual figures based on their recommendations,” the Bangladesh Bank boss said.
The agriculture loan distribution target of the current fiscal is 11,500 crore and nearly 78 % of the target has so far been achieved till April. “We’ve two more months in hand and hope to add another 12% to 14 % in the remaining two months,” Atiur said.
The central bank head revealed that the new agriculture loan policy, which will be more farmer-friendly, would be finalized soon, after recommendations from all. “It’ll formally be announced in July and now we’re seeking suggestions from all.”
Dr Atiur disclosed all this while talking to reporters after an opinion exchange meeting with a group of field-level branch managers under state-owned commercial and specialized banks held at the BB’s conference hall today.
The meeting was organized to get feedback on agriculture loan activities from the field-level branch managers of state-owned commercial and specialized banks.
Terming the agricultural sector as the driving force of the economy, Atiur said there is no alternative to patronizing agriculture to boost the country’s economic growth.
Replying to a question the BB governor said they would take all necessary steps in the upcoming agriculture loan policy to simplify agro-loan disbursement system, make the entire process harassment-free and to save the farmers from brokers’ harassment.
“The money of sanctioned loan will be directly deposited to the farmers’ accounts. No need to take help from any broker. And in the coming policy, we’ll clearly mention it,” Atiur said, adding that the situation has already improved a lot.
He indicated that some major positive changes would be brought into agriculture loan policy including removal of operational difficulties, simplification of application form, minimizing the gap between loan sanction and disbursement, decreasing the processing fee and distributing loans through farmers’ own account.
When asked about loan defaulters, the BB governor boldly said they are not favoring ‘loan exemptions’ and want to put an end to the culture of ‘loan exemption’. “We’ve also asked bank officials to give their best efforts for ensuring high loan recovery trend.”
Earlier, in his introductory speech in the meeting, Atiur said the central bank, for the first time, has taken a refinancing scheme of TK 500 crore for the landless farmers and set a target of Tk 100 crore loan distribution till June, 2010.
“Against the pre-set target, 44,000 landless farmers got loans worth Tk 45 crore till April,” he said, asking field-level branch managers to keep their eyes open regarding whether the targeted farmers are getting loans or not in the truest sense.
The central bank boss claimed that strict monitoring of loans to farmers has helped minimize defaults in the agricultural sector. “Credit goes to you all (field-level branch managers) who are directly involved with the farmers.”
Appreciating the role of branch managers, who are directly involved with farmers at the field-level, Atiur said that farmers are now getting the desired services and this has become possible due to their patriotic mentality and sincerity. He also assured the bankers of changing their wage structure.
The BB Deputy Governor Murshid Kuli Khan also addressed the meeting, which was presided over by BB executive director Abul Kashem.
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