ANNOUNCEMENT 27 Apr 2020

Bangladesh has extended subsidized loans to the agricultural sector to support it during the COVID-19 pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Agricultural Credit Department Circular No. 1
https://www.bb.org.bd/mediaroom/circulars/acd/apr272020acd02.pdf

Bangladesh Bank - A Brief on the Policy Responses to Economic Fallout of the COVID-19
in Bangladesh
https://www.bb.org.bd/pub/research/policynote/pn2001.pdf

Farmers to get loans at 4% concessional interest for 15 months
https://tbsnews.net/economy/agriculture/farmers-get-loans-4-concessional-interest-15-months-74518

Farm loan disbursement below target - The Financal Express
https://www.thefinancialexpress.com.bd/economy/farm-loan-disbursement-below-target-1601092496

Bangladesh Bank sets farm credit target of Tk26,292 crore in FY2021- BizData Insights
https://bizdatainsight.com/2020/07/23/bangladesh-bank-sets-farm-credit-target-of-tk26292-crore-in-fy2021/

Farm loan release rises by 54pc in July - New Age
https://www.newagebd.net/article/114123/farm-loan-release-rises-by-54pc-in-july

BB sets farm loan target at Tk24,124cr for FY20 - Dhaka Tribune
https://www.dhakatribune.com/business/banks/2019/07/23/bb-sets-farm-loan-target-at-tk24-124cr-for-fy20

Inception date: 01 Apr 2020 | Removal date: 30 Jun 2021

Interest payment subsidy

On 27 April 2020, the Bangladesh Bank through Agricultural Credit Department Circular No. 01 notified scheduled banks to provide subsidized loans at a 4% interest rate in the crop sector to support it during the COVID-19 pandemic. The difference in the interest rates, subsidized from 9%, will be provided by the Bangladesh Bank.

The facility is available from 1 April 2020 to 30 June 2021.

As per several news reports, the target for disbursement of farm loans has been fixed at Tk 26,292 crore (~ USD 3.16 billion) for the fiscal year 2020-2021 while the target was Tk 24,100 crore (~ USD 2.89 billion) for the previous fiscal year. Around 60% of the disbursement target is allocated for the crop sector. The fiscal year in Bangladesh begins on 1 July and extends until 30 June of the next year.

* Bangladeshi Taka to USD as on 27 April 2020 - Tk 83.31/USD

AFFECTED PRODUCTS

 
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