Farmers get loan rescheduling facility

The Bangladesh Bank yesterday relaxed the rescheduling policy for short-term farm loans to support farmers in the wake of rising prices of agricultural items in the global market.

As per the new policy, farmers will be able to have their default loans rescheduled without any down payment.

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They will also enjoy a six-month grace period and the repayment tenure of the loans will be three years, said the BB in a notice.

Farmers usually have to repay their short-term loans by 12 months and are given a maximum 18 months in repayment tenure when the loans turn sour.

After the rescheduling of the loans, banks will now be able to extend fresh loans without taking any deposits from farmers.

The farmers who are facing certificate cases will also qualify for the relaxed facility. In such a situation, banks will have to have the procedure of cases suspended or settle them based on the agreement with borrowers.

The move comes at a time when the onrush of water inundated standing Boro paddy fields in the haor areas, dashing hopes for food security and income of hundreds of farmers in the northeast region.

The haor areas, comprising the Sylhet division and a part of the Mymensingh division, make up 16 per cent of the total annual Boro rice production in the country.

The price of agriculture items has increased in the global market owing to the Russia-Ukraine war, supply disruptions and demand recovery, making imports expensive.

Atiur Rahman, a former governor of the central bank, welcomed the move, saying the decision would provide respite to farmers to continue farm activities.

"The farm sector helped keep the wheels of the economy running during the height of the pandemic."