ANNOUNCEMENT 27 Apr 2020
Bangladesh has extended subsidized loans to the agricultural sector to support it during the COVID-19 pandemic.
NUMBER OF INTERVENTIONS
Agricultural Credit Department Circular No. 1
Bangladesh Bank - A Brief on the Policy Responses to Economic Fallout of the COVID-19
Farmers to get loans at 4% concessional interest for 15 months
Farm loan disbursement below target - The Financal Express
Bangladesh Bank sets farm credit target of Tk26,292 crore in FY2021- BizData Insights
Farm loan release rises by 54pc in July - New Age
BB sets farm loan target at Tk24,124cr for FY20 - Dhaka Tribune
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