Banks asked to ease off loan recovery measures in haor areas

25 Apr,2017

Dhaka, BdChronicle:

Bangladesh Bank has asked banks to suspend their agricultural loan recovery activities in flashflood-affected haor areas.

It also instructed banks to put a hold on their moves to file any certificate case against loan default farmers in the haor areas in Sylhet, Sunamnganj, Netrokona, Kishoreghanj, Habiganj, Moulvibnazar and Brahmanbaria districts. As per the instruction, loan recovery will remain postponed until the situation improves.

A BB circular issued by its Agriculture Credit Department gave these instructions to the scheduled banks.

It asked the banks to extend their facilities for rescheduling the credit through relaxing down payment and also with soft instalment.

BB also instructed the scheduled banks to issue new credits to farmers for different crops including planted aman and fisheries considering the reality of the situation of the area.

It asked the commercial banks to provide credit at concessional interest rates for robi crops and importing alternative crops such as pulses, oilseeds, corns and spices.

The banks were asked to provide necessary credit to affected farmers for rearing poultry birds, cattle and purchasing fodder.

Meanwhile, in a separate circular the central bank has asked all scheduled banks and financial institutions to provide financial assistance and relief (food, clothes, pure drinking water and medicines) among the flood-affected people in haor areas under their Corporate Social Responsibility (CSR) activities.

Some 3.3 lakh people are believed to have been affected by the disaster brought on by flash floods in the haors.

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