Loan disbursement deadline of Tk 5,000 crore agri-refinance fund extended

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Business Report :

Bangladesh Bank (BB) on Thursday extended the time for the disbursement of loans under a Tk 5,000 crore refinance scheme to support farmers to get loans to grow crops and ensure food security for the country.

There is demand for this scheme. So, the deadline for disbursing loans under the scheme has been extended to December 31 this year, the central bank said in a circular.

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The BB formed the refinance fund for banks in November 2022 to provide low-cost loans to farmers against the backdrop of rising food prices in the global market at that time impacted by the Russia-Ukraine war.

Under the scheme, the banking regulator offered loans to producers at 4 percent interest-much lower than the current interest rate on loans-through banks to grow rice, vegetables, fruits and flowers, fish and do poultry and dairy farming.
The central bank later included cattle fattening into the fund.

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