Bangladesh Bank launches Tk 10,000 crore agri-livestock refinance scheme
Bangladesh Bank (BB) today introduced a Tk 10,000 crore revolving refinance scheme aimed at increasing agricultural production, strengthening food security and creating jobs in rural areas.
Under the scheme, scheduled banks under the central bank’s agricultural and rural credit programme will receive refinance support from BB at a 4 percent interest rate.
For all latest news, follow The Daily Star's Google News channel. The banks will then lend to farmers and entrepreneurs at a maximum rate of 8 percent, according to a BB circular.
The five-year fund will be financed from BB’s own resources and managed by its Agricultural Credit Department-1.
The scheme will cover crop cultivation, fisheries, livestock, agricultural machinery, irrigation equipment and other income-generating farm activities. Small and marginal farmers may receive loans of up to Tk 5 lakh for crop production without collateral, based on crop hypothecation.
Loan limits have been set at Tk30 lakh for crop production, Tk 15 lakh for livestock and other agricultural activities, Tk 20 lakh for agricultural machinery, and Tk 1 crore for fisheries and livestock projects.
Banks will be required to maintain separate accounts, submit regular reports and ensure proper monitoring of loan use and recovery under the scheme.
TK1,000CR FUND FOR GREEN INDUSTRIES, FACTORIES
In another move, BB has also launched a Tk 1,000 crore revolving refinance fund to boost investment in green industries and environmentally sustainable factory buildings, supporting the country’s climate and sustainable development goals.
Under this scheme, banks and financial institutions will receive refinance support at a 2 percent interest rate and will lend to eligible borrowers at a maximum rate of 5 percent.
The repayment period will range from three to 10 years, with a grace period of up to one year.
The fund will support the establishment of green industries and factory buildings certified or pre-certified under internationally recognised standards such as LEED (Leadership in Energy and Environmental Design), EDGE, BEEER and GreenARCH.
A single borrower can receive up to Tk 100 crore in refinance support, while projects must maintain a minimum debt-equity ratio of 70:30. Defaulted borrowers will not be eligible for the facility.
Participating banks and financial institutions must follow BB’s guidelines on sustainable finance, environmental and social risk management, climate risk management and disclosure.
BB said the fund, financed from its own resources, has taken immediate effect and aims to promote environmentally responsible industrialisation and strengthen green financing in the financial sector.
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