Flood-hit districts to get higher agricultural loans

The Bangladesh Bank has asked lenders to ensure disbursement of at least 40% of their unused funds – received from the central bank's Tk3,000 crore refinancing scheme – in flood-hit north and northeastern districts.

The Agricultural Credit Department of the Bangladesh Bank on Monday issued a circular in this regard, which also increased the number of priority districts for the low-interest rate loan facility.

"Banks who received funds under the Tk3,000 crore refinancing scheme have to use 40% of their unused funds," reads the circular that came into effect immediately.

The central earlier directed the lenders to disburse at least 20% of their unused funds in the flood-hit districts.

The new direction is applicable to severely-hit Sylhet, Sunamganj, Moulvibazar, Habiganj, Kishoreganj and Netrokona, as well as moderately-hit Sherpur, Jamalpur, Rangpur, Lalmonirhat, and Kurigram.

Other flood-hit districts, identified by the Ministry of Disaster Management and Relief, can also be included in the list, according to the circular.

Immediately after the outbreak of deadly coronavirus in the country, the government formed the scheme to protect farmers from the pandemic fallouts, by offering loans at 4% interest.