Bangladesh Bank on Tuesday announced its plan to disburse Tk 39,000 crore in agricultural and rural loans in the current fiscal year.
The new loan disbursement target is 2.63 percent higher than the target set in the previous fiscal year - Tk 38,000 crore.
The loan, the BB said, is expected to boost farm productivity, support GDP growth and help contain inflation.
Of the total targeted disbursement, Tk 13,880 crore has been allocated for state-owned commercial and specialised banks to disburse, while private and foreign commercial banks will disburse Tk 25,120 crore, said a BB press release.
The new agricultural and rural credit policy and programme for FY2025-26 was unveiled at a press conference at the Jahangir Alam Conference Hall of Bangladesh Bank headquarters.
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The new loan disbursement target was shared at a press conference held at the Jahangir Alam Conference Hall of Bangladesh Bank's headquarters.
The central bank’s governor Dr Ahsan H. Mansur also announced the new Agricultural and Rural Credit Policy and Programme for FY2025-26 at the press conference. Deputy Governors, the BFIU Chief, the central bank’s Chief Economist, senior officials, and CEOs of scheduled banks also attended the press conference.
The central bank revises its agricultural and rural credit policy annually.
Some of the key additions to the policy are inclusion of Prabashi Kallyan Bank in the farm loan programme, mandatory CIB reporting for disbursing any amount of agricultural loan, increased livestock loan disbursement target, introduction of irrigation and farm equipment loans, and expansion of contract farming.
Bangladesh Bank emphasised that timely and sufficient financing for agriculture is vital for poverty reduction, employment creation, and income growth among marginalised rural communities.
The central bank expressed confidence in the press release that these measures will bolster macroeconomic stability, ensure a steady food supply, and contribute to sustainable rural development by increasing agricultural production.