The deadline for repaying loans under the Bangladesh Bank's Tk200-crore refinancing scheme for the dairy and artificial insemination sector has been extended till December 2024.
The Agricultural Credit department of the central bank on Monday issued a circular in this regard.
Established in 2015, the five-year scheme offered loans at 5% interest to end borrowers until a 2020 deadline, while the Bangladesh Bank subsidised the lenders – who signed the participation agreement with the central bank for the scheme – with up to 5%.
The borrowers were supposed to repay the loans within the next three years, which means those who received the loans at the eleventh hour would be able to pay that by 2023.
"As many farmers hit by the Covid pandemic have been failing to repay loans on time, the central bank has extended the deadline," a Bangladesh Bank senior official, wishing to remain unnamed, told The Business Standard.
Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Sonali Bank, Janata Bank, Agrani Bank and several other specialised and commercial banks inked the participation agreement with the central bank.